Picture: REUTERS
Picture: REUTERS

The rand was firmer on Thursday morning after the US Federal Reserve cut its interest rate on Wednesday, preserving the yield advantage of holding SA assets.

The Fed cut its interest rate by 25 basis points, in line with market expectations, with chair Jerome Powell saying the latest cut was to offset current risks including global weak economic growth and trade tensions. The division among Fed policymakers did, however, lower expectations that it would aggressively cut rates in the future.  

The SA Reserve Bank is set to announce its repo rate decision on Thursday. The consensus among 18 economists polled by Bloomberg is for the Bank to keep the rate unchanged at 6.5% after cutting by 25 basis points at its most recent meeting in July.

At 10.25am, the rand had firmed 0.15% to R14.6677/$ while it was flat at R16.2165/€ and R18.3134/£. The euro had firmed 0.26% to $1.058.

Gold was up 0.18% to $1,496.85/oz and platinum 0.54% to $931.74/oz. Brent crude added 0.61% to $64.03 a barrel.

mjoo@businesslive.co.za