Rand stable after Powell reiterates Fed’s cautious stance
Federal Reserve chair Jerome Powell’s dovish comments and news of fresh US-China trade talks bolstered emerging-market currencies
The rand was flat against the dollar on Friday morning, although a little weaker against the euro, as traders digested news of fresh US-China trade talks as well as dovish Fed commentary. US Federal Reserve chair Jerome Powell reiterated in a speech overnight that the world’s most influential central bank would be cautious when raising rates. Confirmation that high-level talks between US and Chinese officials would begin at the end of January was also supporting risk-on sentiment. At 9.50am the rand was flat at R13.8438/$ and at R17.6499/£. It was 0.14% weaker at R15.9543/€. The euro was 0.21% stronger at $1.1524. The rand has remained somewhat range-bound this week, with the local currency finding support when it broke above the key R14/$ level, analysts said. Neither local data, nor international developments, have managed to shake the local currency out of its range, and a decisive break below R13.82/$ would be required for this to happen, said Mercato Financial Services analyst ...
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