Rand hovers at R14/$ as global events keep the dollar under pressure
Local focus will be on the Reserve Bank monetary policy decision on Thursday, while events at the weekend served to weaken the dollar
The rand was marginally weaker against major global currencies on Monday morning, following gains at the weekend, boosted by acrimony between the US and China at the weekend, as well as dovish comments from a US Federal Reserve chairman.
At 9.15am the rand was 0.12% weaker against the dollar at $14.0079, 0.04% against the euro at R15.983 and 0.01% to the pound at R17.986. The euro was flat at $1.141.
US Fed vice-chairman Richard Clarida had said on Friday that he saw short-term interest rates approaching the neutral level — implying the possibility of fewer than expected interest rate increases in coming months.
Meetings between US and Chinese officials at the weekend were also not promising, pointing to continued acrimony ahead of a meeting between US President Donald Trump and Chinese Premier Xi Jinping in Argentina in November.
Emotions were so high at the summit, dominated by disagreements between the US and China, that Chinese officials demanding a meeting with Papua New Guinea’s foreign minister, who was leading negotiations, forced their way into his office on Saturday and had to be escorted away by police after a confrontation, reported Dow Jones Newswires.
Focus this week will also be on Brexit issues, with UK Prime Minister Theresa May’s position remaining tenuous.
Local focus is on the Reserve Bank monetary policy decision on Thursday. The consensus, according to Bloomberg, is the Bank will raise the benchmark interest rate 25 basis points.
CORRECTION: November 19 2019
An earlier version of this article's headline read that the rand was at $14, which should have been R14 to the dollar.