Rand firmer as investors’ appetite for risk remains unspoiled
Uncertainty over Brexit has failed to dull interest in emerging-market currencies, although markets are braced for volatility as events in the UK unfold
UK Prime Minister Theresa May’s crushing Brexit defeat had failed to spoil the mood on global markets on Wednesday afternoon, with the rand eking out gains against major global currencies. At 2pm, the rand was 0.38% stronger at R15.6239/€, 0.14% stronger at R17.612/£, while remaining flat at R13.7296/$. The euro was 0.29% stronger at R1.1384/$. The rand remains at a one-month high against sterling, which had whipsawed on Tuesday evening after the UK parliament overwhelmingly rejected May’s draft Brexit deal. This has set the stage for a no-confidence vote in the prime minister scheduled for 9pm local time on Wednesday, and added to the uncertainty of when — and if — the UK will leave the EU. The rand has been quite resilient this week, and remains the best-performing emerging-market currency against the dollar so far this year. It has gained 4.47% against the dollar so far in 2019, 5.08% against the euro, and 3.68% against the pound. Positive developments in the US-China trade war, ...
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