Rand firms against the dollar as euro cheers possible Brexit deal
Reports that the UK and EU are close to a deal covering financial services has put the dollar on the back foot
The rand was firmer on Thursday afternoon, benefiting from a weaker dollar environment, as reports circulated the EU and UK were close to a deal covering financial services. Financial services is the lifeblood of the UK economy, and any barriers to transactions with the continent would likely deal a death blow to the UK economy, said BK Asset Management MD Boris Schlossberg in a note. The euro, which the rand usually tracks, gained 0.8% against the dollar, while the gold price was also higher. Gold, which generally supports the rand, usually benefits from a weaker dollar as it makes commodities cheaper for those buying in other currencies. “Today is a primary example of how gold moves are not always straightforward and also how, despite being a traditional safe haven, it may benefit greatly from a Brexit deal,” said Oanda analyst Craig Erlam. Local news was somewhat downbeat, with the Absa purchasing managers index (PMI) earlier printing at 42.4 points in October from September’s up...
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