Rand stable as investors watch Reserve Bank
Dollar has struggled to recover from recent weakness, the currency was under pressure after tepid housing data on Monday
The rand was only marginally weaker on Tuesday morning, aided by slight pressure on the dollar, ensuring it remained within 5c of the psychologically important R14/$ level.
The Thanksgiving Day holiday in the US is expected to subdue volatility this week, while focus remains on Brexit and the China-US trade war.
US housing data on Monday disappointed, while a renewed sell-off of tech stocks has weighed on equities.
At 9.30am the rand was flat at R14.038, the euro at R16.0857 and the pound at R18.0431. At the same time the euro was little changed at $1.1458.
Local focus this week is on the Commission of Inquiry into State Capture, although the Reserve Bank interest rate decision is the main event.
According to the Bloomberg consensus, the Bank will raise interest rates by 25 basis points, although some analysts have pointed to SA’s lagging economic growth, relative stability in the rand and an easing oil price as reasons to keep rates on hold.
The International Monetary Fund (IMF), however, warned in a report on Monday that SA’s economic problems were structural in nature, saying that the Bank should prioritise price stability.