Rand remains near R13/$

Rand remains near R13/$
Published: 26 July 2017
The rand oscillated around the 13 to the dollar mark on Wednesday morning, reflecting generally subdued price action across the currency markets.

The dollar was in a relatively stable range, after falling fairly sharply against a basket of currencies over the past week amid uncertainty over whether the US Federal Reserve would increase interest rates again later in the year.

So far in 2017, the world's most influential central bank lifted rates by a cumulative 50 basis points, but the release of some disappointing economic data recently has cast doubt on the Fed's outlook.

Higher US rates have the potential to reduce the appeal of higher-yielding currencies, including the rand.

The US Fed wraps up its two-day policy meeting later in the day, but is expected to keep rates on hold. Markets expect the Fed to announce plans to wind down its bond-buying programme, which has been in place since the 2008-09 global financial crisis.

"Markets continue to bide their time as we await the (US Fed) policy statement for clues on the course of its next rate hike," TreasuryOne dealer Phillip Pearce said in a note.

At 9.06am‚ the rand was at R13,0652 to the dollar from R13,0783‚ at R15,2067 to the euro from R15,2333 and at R17,0085 to the pound from R17,0358.

The euro was at $1,1637 from $1,1646.

- BusinessLive
Tags: Rand,

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