Rand firms as oil wobbles, with all eyes on the US Fed
There is near consensus that the world's most influential central bank will raise rates 25 basis points, but its outlook will be intensely scrutinised
The rand was slightly firmer on Wednesday morning, with all eyes firmly on the US Federal Reserve policy announcement later in the day. At 9.30am the rand was 0.72% better against the dollar at R14.2516, 0.48% up against the euro at R16.2383 and 0.57% firmer against the pound at R18.0426. The euro was 0.26% up to the dollar at $1.1395. The benchmark R186 government 10-year note was last seen at 9.075% from 9.105%. Consensus is almost unanimous that the Fed will raise rates for the fourth time this year, with 91 of 92 experts polled by Bloomberg expecting an upper bound rate of 2.5%. The Fed's outlook will be scrutinised, however, amid concern that there will be a synchronised global economic slowdown in 2019. With growing fears about the health of the global economy, the markets simply don’t think the US economy can handle higher rates, London Capital Group head of research Jasper Lawler said. “Traders will be watching for dovish signs, such as the dropping of the phrase 'further gr...
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