Rand holds its ground after choppy week for global markets
Meanwhile, the prospect of a US government shutdown is weighing on the dollar
The rand lost a bit of ground on Friday afternoon, as the dollar clawed back some territory from a basket of currencies, notably the euro. On balance, the rand held up reasonably well on the week, which was particularly ugly for risk assets. The initial market reaction to the US Federal Reserve’s outlook on interest rates was negative for risk assets, particularly shares. The rand tends to be more affected by shifts in global risk sentiment because it is one of the most highly traded currencies in emerging markets. The Fed forecast two interest-rate hikes in 2019, instead of the three it had previously anticipated.
Local bonds held steady in early afternoon trade and were much stronger on the week, helped in part by the recent slide in international oil prices. That could help offset the net effect of the weaker rand environment. Brent crude was under renewed pressure in the afternoon, down 2.59% to $53.511 per barrel, its lowest level in more than a year. The rand was still a...
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