JOHANNESBURG - Thin volumes on Wednesday’s public holiday assisted the rand to gain some ground against major currencies reaching highs of R14.27 against the greenback according to Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions.
The rally was, however, short lived with the rand starting today off at R14.42 as Federal Reserve Chairman Jerome Powell indicated that a rate cut in the US would be very unlikely at this stage.
Local Manufacturing PMI and vehicle sales are due today, while the UK’s BOE is due to announce its interest rate decision. We will also be turning our attention to the US which is due to release its initial jobless claims this afternoon.
The rand is expected to experience a bumpy ride today, with a bias to the weaker side. The range remains at R14.30 to R14.50, however a break above R14.50 opens the door to another leg weaker with the next target at R14.80.
You can also follow the Business Report on Instagram here
BUSINESS REPORT ONLINE