Rand suc­cumbs to lower com­modi­ties

The Star Early Edition - - MARKETS -

THE RAND soft­ened yes­ter­day, suc­cumb­ing to lower com­mod­ity prices and re­newed de­mand for the dol­lar after the head of the US Fed­eral Re­serve sug­gested in­ter­est rates would rise steadily in the years ahead.

At 5pm, the rand was bid at R13.6678 to the dol­lar, 17.65c weaker than at the same time on Wed­nes­day.

The lo­cal unit has traded er­rat­i­cally this week, with traders tread­ing cau­tiously ahead of Don­ald Trump’s in­au­gu­ra­tion as US pres­i­dent to­day and the SA Re­serve Bank’s rate de­ci­sion next Tues­day.

In­vestors have been anx­ious over whether Trump will fol­low through on prom­ises to in­crease in­fra­struc­ture spend­ing as well as a raft of other ag­gres­sive poli­cies to boost growth in the world’s big­gest econ­omy.

Bonds also weak­ened in the ses­sion.

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