Rand breaks below R14/$ overnight after Fed chair hints at rate cut | Fin24
 
  • Another VAT hike?

    Absa warns that govt may again announce an increase in value added tax in next month's Budget.

  • SA Revenue Service

    The tax agency says a unit that tackles illicit financial flows has recovered R2.6bn since April 2019.

  • State Capture Inquiry

    Former Eskom chairperson Zola Tsotsi says Tony Gupta threatened to have him removed.

Loading...

Rand breaks below R14/$ overnight after Fed chair hints at rate cut

Jul 11 2019 08:35
Fin24

The rand strengthened to under R14/$ overnight after Fed Chairperson Jerome Powell hinted the bank may be preparing to cut interest rates.

"[Powell] surprised markets with an unexpectedly dovish address to congress [on Wednesday], following the solid employment data from the economy," said Bianca Botes of Peregrine Treasury Solutions in a morning note to clients. 

"The testimony quickly saw the rand strengthening by close to 0.8% in the afternoon, with the rally continuing in the overnight session to break below R14.00/$."

The local currency was trading at R13.95 at 08:15 on Thursday morning, its strongest level since late April 2019. 

"The rand is likely to lean towards more strength with the R13.80/$ level now becoming a realistic target."

rand  |  markets  |  currencies
NEXT ON FIN24X

Small breather for stocks

2020-01-24 17:42

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...