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JOHANNESBURG. — The rand was trading in a firmer environment against the dollar yesterday morning having strengthened by about 20c since Wednesday morning. Investor focus remains squarely on the US Federal Reserve, which will announce its decision on interest rates on Thursday night. At 8.20am, the rand was at 13,2854 to the dollar from a close of 13,2662. Against the euro the rand was at 14,9971 from 14,9799 previously and was at 20,5990 against the pound from a previous close of 20,5573.
The euro was at $1,1289 from $1,1292.
Investec chief economist Annabel Bishop said rand strength was due to the dwindling expectation of a US interest rate hike. “Markets now price in only a 25 percent chance of ‘lift-off’ at the September Federal open market committee (FOMC) meeting. The US interest rate has been zero bound since late 2008 — an increase this year would represent the first (lift-off) in seven years,” Ms Bishop said.
She said a decision not to hike rates at the meeting could see the rand strengthen to as much as R13 against the dollar. — BDLive.
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