JOHANNESBURG – The rand firmed on Tuesday as the dollar weakened after US President Donald Trump criticised the head of the Federal Reserve for raising interest rates.
At 5pm the rand was 29c firmer than Monday’s same-time bid at R14.36 a dollar, in what traders said was the beginning of a consolidation pattern with momentum indicators showing the domestic unit was oversold. Against the pound, the currency was bid 22c firmer at R18.47 and to the euro, it was 21c stronger at R16.53.
The rand crashed to a two-year low last week as the financial crisis in Turkey rattled emerging markets broadly, adding to concerns about the impact of the US-China trade spat on global economic growth.
In an interview with Reuters, Trump said he was “not thrilled” with Federal Reserve chairperson Jerome Powell for raising interest rates, clobbering the dollar.
The impact of Trump’s comments on US monetary policy outweighed him saying that he was not anticipating much from this week’s trade talks between the US and China. Investors are hoping that the discussions will go some way towards resolving the damaging dispute.