Rand slightly softer, but remains on track for a good January
The dollar is under pressure as the market expects the Fed to retain its dovish tone this week, while investors continue to eye US-China trade talks
The rand was softer against major global currencies on Tuesday morning, but still on track for its best January since 1989, amid a cautious tone on global markets. At 9.50am the rand was 0.31% softer at R13.7058/$, 0.42% weaker at R15.6756/€ and had depreciation 0.17% to R18.006/£. The euro was flat at $1.1437. The local currency has appreciated almost 5% so far in January, boosted by the US Federal Reserve’s tilt towards a dovish stance, as well as some signs of progress in US-China trade talks. Trade negotiations between the world’s two-largest economies resume on Wednesday. This comes after US authorities imposed criminal charges on Chinese tech giant Huawei on Monday, threatening to escalate tension. Markets are also watching the US Federal Reserve policy meeting on Wednesday, although the Fed is expected to retain its dovish tone. “Market activity has been fairly subdued overall over the past couple of weeks and it feels like investors are still relatively tentative about where...
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