Rand succumbs to lower commodities
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.