Rand falls on Trump’s inauguration jitters
THE RAND retreated yesterday, slipping more than 1 percent as jitters ahead of Donald Trump’s inauguration as US president dampened demand for risk currencies globally.
At 5pm, the rand was bid at R13.6266 to the dollar, 5.50c softer than at the same time on Friday, erasing most of the previous week’s gains that lifted the unit to a two-month high.
Trump is due to be sworn in as leader of the world’s number one economy on Friday and investors are anxious to see whether he will deliver on promises to increase infrastructure spending.
“Most of his likely actions have been well anticipated but there will still be a lot of market focus to see the relative weighting of protectionism versus economic stimulus,” chief analyst at Rand Merchant Bank, John Cairns, said.