The rand broke past the psychologically important R14/$ handle for the first time since late February on Wednesday morning, with most emerging-markets currencies firmer ahead of what are expected to be dovish US Federal Reserve minutes later in the day. The rand was leading gains among its emerging-market peers ahead of the Fed minutes, due at 8pm SA time. The Fed’s more dovish stance this year has proved beneficial for emerging markets, as lower interest rates in the US makes emerging-market assets, such as SA bonds, more attractive for investors seeking higher yields. The local currency has been on the front foot since Moody’s Investors Service gave an upbeat opinion on SA’s credit rating, and has gained 3.3% from a 2019 low of R14.7495 reached on March 28. At 10.41am on Wednesday, the rand was 0.71% firmer at R13.9884/$, 0.63% better at R15.7671/€, and 0.53% better R18.2904/£. The euro was flat at $1.1272. Analysts have expressed some surprise at the stability of the currency in ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.