Picture: REUTERS
Picture: REUTERS

The rand was slightly weaker against major global currencies on Wednesday morning as the dollar firmed after supportive events in the US.

The dollar found support on Tuesday after data showed that US consumer confidence climbed to an 18-year high in September, while US President Donald Trump made some remarks suggesting he was confident a trade deal with China could be secured.

The rand is under some pressure after the medium-term budget policy statement last week, which has prompted the return of investor concerns that SA may be on the receiving end of credit-rating downgrades.

This could make it difficult for the rand to strengthen significantly against the dollar, analysts said.

The rand’s direction is largely being determined by movements in the dollar, said TreasuryOne currency dealer Andre Botha.

"With no real impetus in markets at the moment we expect the Rand to trade in narrow bands while we await Friday's non-farm payroll numbers," said Botha.

At 9.30am the rand was 0.34% weaker against the dollar at R14.6545, 0.45% softer against the euro at R16.636 and 0.45% lower against the pound at R18.6384. The euro was at $1.1353 from $1.1343.

gernetzkyk@businesslive.co.za