The rand treaded water against major global currencies on Friday morning, stable after what was a volatile session on Thursday. In the absence of major local and international data releases, no new catalysts are on the horizon as the weekend approaches. The local unit was on the receiving end of hawkish Reserve Bank commentary, bullish testimony by US Federal Reserve chairman Jerome Powell and comments by US President Donald Trump that interest rates were rising too quickly in that country. Trump’s comment gave pause to the recent dollar rally, with the rand volatile. The local currency was expected to be somewhat inert, despite the Bank commentary, Rand Merchant Bank analyst Nema Ramkhelawan-Bhana said. "We did not account for the emerging-market contagion effect, which dragged the rand 2.4% weaker against the greenback as investors offloaded a variety of emerging-market stocks and bonds," she said. The rand has been volatile of late, having strengthened about 70c since reaching R1...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.