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The rand was firmer against the dollar on Wednesday morning, as the euro maintained its newly found momentum against the dollar.
The dollar is under renewed pressure following President Donald Trump’s forceful “America First” state of the union address on Tuesday, overshadowed by a weaker close on the Dow and as bond yields consolidate at higher levels.
The market is keenly watching US Federal Reserve chairwoman Janet Yellen’s stance at her last policy meeting, which is set to end on Thursday. A less hawkish forward view could mean further pressure on the greenback.
The rand was also supported by reports that the ANC’s national working committee had instructed the party’s top six officials to tell President Jacob Zuma to step down before the state of the nation address in February.
The rand was holding steady, as local political headlines remained focused on the various scenarios regarding Zuma’s future, analysts at Nedbank Corporate and Investment Banking said.
“On the international front … Yellen’s final Federal open market committee meeting is unlikely to hold too many surprises,” Nedbank said.
At 8.52am the rand was at R11.9268 to the dollar from R11.9605, at R14.8440 to the euro from R14.8350 and at R16.9334 to the pound from R16.9227.
The euro was at $1.2443 from $.2402. – BusinessLive
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