Rand stable at firmer levels after dovish Fed minutes
The local currency gained a few cents against the dollar overnight, after US Federal Reserve minutes showed that policy makers remain cautious
The rand was slightly weaker but stable on Thursday morning, after finding some buyers overnight, when US Federal Reserve minutes pointed to a dovish stance from policymakers.
The minutes indicated that Fed officials were prepared to put rates on hold until there was greater clarity on what risks faced global growth. Political battles over Brexit and a trade war between the US and China have dented global economic momentum.
One official even said only one interest rate would be required in 2019, as opposed to the two pencilled in by the Fed in December.
Headwinds for the global economy were underscored earlier by poor data out of China, with factory-gate inflation for December, as measured by the annual change in the producer price index, only rising 0.9% in December, compared with 2.7% growth in November.
Locally, data is due in the form of the South African Chamber of Commerce (Sacci) business confidence index for December, due at 11.30am. Manufacturing data for November is due at 1pm.
At 9.40am the rand was 0.16% weaker at R13.8817/$, 0.17% against the euro at R16.0256, while it was flat against the pound at R17.7083. The euro was flat at $1.1545.