Rand slightly weaker

Chronicle (Zimbabwe) - - Business -

JO­HAN­NES­BURG — The rand eased yes­ter­day morn­ing, catch­ing its breath after ear­lier touch­ing its best level to the dol­lar in two weeks.

“With the lack of noise and neg­a­tive head­lines from the Pres­i­dency or the Trea­sury, the rea­sons for hold­ing those long dol­lar po­si­tions dwin­dle,” Stan­dard Bank trader War­rick But­ler said in a note.

The rand has strength­ened more than 30c against the green­back, buoyed in part by bet­ter-than-ex­pected GDP fig­ures and a weaker dol­lar.

The dol­lar came un­der fur­ther sell­ing pres­sure after the dis­ap­point­ing US ser­vices sec­tor data on Tues­day dealt a blow to prospects of a US in­ter­est rate hike in Septem­ber.

“Over­all, it seems like the mar­ket priced in too much of (a) po­ten­tial rate hike by the Fed in Septem­ber. Even at 25 per­cent . . . I guess that is too much for the mar­ket,” But­ler said.

“My per­sonal view is that if they don’t go now, they may not have the chance to go ever. The re­cent ISM (In­sti­tute of Sup­ply Man­age­ment) data in the US seem to point to dark clouds loom­ing over the US econ­omy.”

At 9.10AM, the rand was at 14,0089 against the dol­lar from 13,9777 at the pre­vi­ous close. It was at 15,7550 against the euro from 15,7340 pre­vi­ously‚ and at 18,7828 against the pound from 18,7906 pre­vi­ously. The euro was at $1,1246, from $1,1257 at its last set­tle­ment. — BDLive

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