The rand was a little firmer against major global currencies on Tuesday afternoon, benefiting from a weaker dollar environment. All eyes are on the US Federal Reserve monetary policy announcement on Wednesday, with markets expecting the Fed to once again adopt a dovish tone, and possibly downgrade its growth forecasts for 2019. Pressure on the dollar has boosted the gold price, to the benefit of SA, which is a major producer. Gold has found favour due to the dovish stance taken by central banks around the world, and the dollar has “hit a ceiling”, said Oanda analyst Craig Erlam. Some focus on Wednesday will also be on local data, with both retail sales numbers for January and the February inflation rate due. Better-than-expected numbers could benefit the rand, but the local currency’s longer-term outlook remained dependent on international factors, said FXTM research analyst Lukman Otunuga. At 2pm, the rand the rand was up 0.45% to R14.3737/$, 0.27% at R16.3235/€ and 0.23% at R19.08...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now