Rand surges towards R14.20 vs the dollar
The rand reacted positively to the news that the Bank of England kept interest rates unchanged, much against market expectation.
Wichard Cilliers, chief currency dealer at TreasuryOne said the local unit traded slightly higher on the back of the news.
By 15:00 the rand was trading at R14.25/$ from R14.45 when trade opened on Thursday – 1.52% firmer.
The market priced in a 25 basis point cut in rates following the economic fallout from Brexit last month.
Cilliers said the post-Brexit and post non-farm payroll rally has dissipated as risk assets started stalling.
“The rand failed to break 14.30 yesterday, and Asian shares have struggled to make it past their new highs. The rand, along with risk assets, could now possibly see a move to R14.20/$,” Cilliers said.
- Dollar/Rand: R14.25
- Pound/Rand: R18.96
- Euro/Rand: R15.84
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