Rand stable, but at weaker levels after hawkish Fed minutes
The local currency is little changed against major global currencies, but slightly stronger against the pound
The rand was little changed against major global currencies on Thursday morning, but slightly stronger against the pound, as markets digested the hawkish US Federal Reserve minutes that were released on Wednesday. The local currency had lost about 10c against the dollar after the Fed indicated it may raise interest rates a little more than expected in order to contain possible overheating of the US economy. There is scope for further dollar strength, but it is too early to tell, said Standard Bank currency trader Warrick Butler. Flows were light, but another bout of risk aversion for global stocks could be in the offing in the days ahead, providing further momentum for the greenback. The pound was under a little pressure on Thursday, as investors watched for developments in Brexit. Reports this week have suggested the EU may agree to a 12-month extension for a trade deal, amid signs that an amicable divorce settlement may not be reached within the next few months. Local focus on Thu...
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