Rand firms to R14.36 to embattled dollar, despite risk-off global trade
Risk assets globally are under pressure from rising geopolitical tension, but the rand is holding up well due to pressure on the greenback
The rand brushed off turmoil on global stock markets and was firmer against major international currencies on Monday afternoon, boosted by pressure on the dollar. The dollar was under strain seemingly from concern that slowing economic growth could derail the US Federal Reserve's planned interest rate increase cycle, BK Asset Management MD Boris Schlossberg said. Investors could also be seeking to lock in gains after a strong showing by dollar-denominated assets, such as stocks, while there was also some concern about rising US twin deficits (budget deficits and trade deficits). Local factors were taking a back seat to international events, analysts said, with ratings agency Moody's opting not to assess SA's sovereign credit ratings. Moody's is now likely to wait for the medium-term budget statement, said Rand Merchant Bank analyst Mpho Tsebe and Elena Ilkova. The forward looking budget, however, was unlikely to be sufficient to prompt an immediate review. A number of issues continu...
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