Rand firms to two-week high against softer dollar
The local currency has benefited from the pressure on the greenback and investor interest in gold, although risk events loom
The rand was firmer against major global currencies on Tuesday morning, reaching a two-week high against the dollar, as global markets continued to feel some pressure from rising global tension. The greenback has been on the back foot as investors increasingly question the pace of US Federal Reserve monetary-policy tightening. Risk assets globally have been sold off amid the expectation that global economic growth has been slowing. This, however, has benefited gold, which has firmed to a two-month high. With the administration of US President Donald Trump also increasing the frequency of speaking out against US interest rate policy, the rand could benefit further from dollar weakness over the medium term, said FXTM global head of currency strategy Jameel Ahmad. Global factors are expected to predominate this week, with an update on Brexit negotiations and the release of US Federal Reserve minutes from its last meeting taking place on Wednesday. The medium-term budget policy statemen...
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