Rand breaches R14/$ barrier ahead of interest-rate decisions
THE rand continued firmer against the dollar late on Monday, breaching the R14/$ level as investors awaited Thursday’s Reserve Bank’s repo-rate decision.
The US Federal Reserve and Bank of Japan central banks are also in focus this week for interest-rate decisions.
Reserve Bank governor Letsetja Kganyago will deliver the repo-rate decision on Thursday afternoon.
At 3.20pm on Monday, the rand was at R14.0290 to the dollar from Friday’s R14.2625. It firmed earlier to R13.9972/$.
It was at R15.6762 to the euro from R15.9070 and R18.3469 to the pound from R18.5465.
The euro was at $1.1175 from $1.1153.
Global and local markets are expected to be fairly range bound ahead of the US interest-rate decision on Wednesday.
Fed chairwoman Janet Yellen’s announcement of the rate decision will be watched closely for clues on future moves.
Nedbank economists said the rand’s continued strengthening against developed-market currencies came despite political turmoil locally and Moody’s placing a number of state-owned companies on review for ratings downgrades.