Rand range-bound as market mulls Brexit’s progress
The focus is on the UK, where MPs will debate progress in Brexit negotiations, while investors are also likely to pay close attention to the US-North Korea summit
The rand was marginally weaker on Wednesday morning, with few major catalysts to give the market direction.
At 9.45am the rand was down 0.19% at R13.8667/$ and 0.21% weaker to R18.3826/£. It was flat at R15.7804/€. The euro was at $1.138.
Much focus is on the UK, where MPS will receive an update on Prime Minister Theresa May’s progress in Brexit negotiations. There may be votes on alternative approaches or amendments, but a vote on whether or not to reject her deal in its entirety is not expected to take place.
May has promised to bring her deal back for approval by parliament by March 12.
US Federal Reserve chair Jerome Powell’s testimony before Congress continues on Wednesday, but Powell has failed to deliver any significant surprises.
The rand is likely to be range-bound on Wednesday, with the dollar expected to determine its movements, said TreasuryOne senior dealer Andre Botha.
There could be movements in the greenback should details of the US-North Korea summit emerge, said Botha.
US President Donald Trump is meeting North Korean leader Kim Jong-un in Vietnam, and may sign a deal covering denuclearisation and economic co-operation.