Rand strengthens to 18-month high

THE RAND hit an 18-month high against the dollar yesterday as the greenback slipped after minutes of the latest US Federal Reserve (Fed) meeting showed policymakers in no rush to raise interest rates.

At 5pm, the rand was bid at R12.8465 to the dollar, 27.13c firmer than at the same time on Wednesday. The currency was trading at its firmest since August 2015.

The Fed minutes overnight showed many policymakers believed it might be appropriate to raise rates “fairly soon” if jobs and inflation data met expectations. But they also highlighted deep uncertainty over President Donald Trump’s economic programme.

“The rand started strengthening yesterday and today we have seen that move being extended,” ETM Analytics market analyst, Jana van Deventer, said.