Rand weakens to the pound after Brexit extension
The EU has agreed to an extension of the Brexit deadline to mid-April, a move that benefits sterling
The rand was a little weaker against the pound on Friday morning, after the EU agreed to a postponement of the Brexit deadline beyond next week.
The EU would allow an extension until at the latest May 22, implying the UK has until April 12 to indicate how it wants to take the Brexit process forward, reported Dow Jones Newswires.
At 9.30am the rand was flat at R14.2181/$, 0.12% weaker at R16.1847/€ and 0.22% softer at R18.6777/£. The euro was little changed at $1.1384.
The bid on the benchmark R186 was last seen at 8.64% from 8.735%.
The rand had found support on Wednesday evening, when the US Federal Reserve delivered a dovish policy statement, indicating there were not plans to raise interest rates in 2019.
Focus is now expected to shift to local issues, with all eyes on a review by Moody’s Investors Service next week Friday.
There could be some short-term gains for the rand, but given Brexit, and domestic uncertainty, upcoming sessions could be volatile, said TreasuryOne senior currency dealer Andre Botha.