Rand kicks off new month on stronger footing
Investors are returning to riskier assets, helping the local currency, which usually benefits from risk-on trade
The rand was almost 1% stronger against the dollar on Thursday morning, beginning a new month on a positive note. Investors continued to pile back into the risky assets, helping the rand, which usually benefits from risk-on trade. The local currency had a rocky patch in October, as did the local bonds, reflecting increased market worries about the health of the country’s finances. The jitters followed the weaker-than-expected fiscal outlook, which kept alive the possibility that SA could lose its last remaining investment-grade status. A strong dollar remains a recurring theme, although it eased off a little in early trade, helping to take pressure off the rand and other currencies. US economic data continues to impress, feeding the expectation that the US Federal Reserve will continue to raise interest rates, which tend to dilute the appeal of emerging markets such as SA. US private-sector jobs report for October was much better than expected, signalling that the US nonfarm payroll...
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