Weaker rand shows little reaction to interest-rate decision, while euro falls
The euro has slipped through $1.16 for the second time in two weeks as the market prices in further interest-rate rises in the US
The rand was weaker on Thursday afternoon after the South African Reserve Bank kept rates unchanged, but the fall was ascribed predominantly to global factors.The rand moved marginally off weaker levels during Reserve Bank governor Lesetja Kganyago’s speech. He said developments in the international environment had placed upward pressure on the inflation trajectory, while the domestic growth outlook remained challenging."The weaker rand exchange rate and higher oil price assumptions have also result in a more elevated inflation trajectory."The decision to keep the repo rate unchanged at 6.5% was expected.The euro fell through $1.16 for the second time in two weeks as the market priced in further rate hikes in the US this year, following hawkish comments by US Federal Reserve chair Jerome Powell.FXTM analyst Hussein Sayed said Powell’s positive assessment of the US economy and the fact that he downplayed the threat of a global trade war had also supported the risk-taking mood. "He al...
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