Rand firms as the hope of stimulus whets investors risk appetite
TreasuryOne’s Andre Botha says global currencies are drifting sideways as traders sit on their hands waiting for the Wednesday’s ECB meeting
The rand was firmer on Tuesday morning, leading emerging-market currencies amid the mounting expectation that large economies may introduce stimulus packages.
“Global currencies are currently drifting sideways as the market is sitting on their hands waiting for the European Central Bank meeting on Wednesday as the main market mover for the week.” TreasuryOne senior currency dealer Andre Botha said.”
At 10am, the rand had firmed 0.28% to R14.7218/$, 0.34% to R16.2588/€ and 0.6% to R18.1289/£. The euro was flat at $1.1044.
Gold was down 0.34% to $1,493,72/oz and platinum 0.6% to $938.68. Brent crude was down 0.1% to $62.62 a barrel.
“The rand is still firmly ensconced in its current range as no new fresh emerging-market sentiment has hit the market. The fallout of the recent risk sentiment reversal can be seen in gold, which is currently trading below the $1,500 level,” Botha said.
Locally, Statistics SA is expected to publish manufacturing production for July later in the day.