Rand extends gains as dollar comes under pressure
US President Donald Trump’s push for low interest rates puts the greenback under pressure, with local focus on consumer inflation data on Wednesday
The rand was firmer against major global currencies on Tuesday afternoon, finding support from a weaker dollar environment.Reports on Tuesday suggested that US President Donald Trump was upset with US Federal Reserve chair Jerome Powell’s monetary policy tightening agenda, which put the greenback under pressure.Although Trump has little direct influence on Powell, his goal of a more favourable position for the US required a weaker dollar, said BK Asset Management MD Boris Schlossberg. As for the Fed, there is little indication that officials were listening to the president as rhetoric from monetary authorities remained consistently hawkish and that is what is likely to keep dollar losses capped for now.There was little news in the form of local or international data, with domestic focus on the release of consumer inflation data for July, due on Wednesday.Analysts expect inflation to accelerate from the 4.6% year on year growth seen in June, due to higher fuel costs and rand weakness...
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.