Rand stead­ies as it breaks ranks with global mar­kets

Chronicle (Zimbabwe) - - Business -

JO­HAN­NES­BURG — The rand was steady yes­ter­day morn­ing as it broke ranks with gen­er­ally pos­i­tive mood on global mar­kets.

In­vestors cheered the Fed­eral Bureau of In­ves­ti­ga­tion (FBI’s) de­ci­sion to close the probe into Demo­cratic pres­i­den­tial nom­i­nee Hil­lary Clin­ton’s e-mails.

“Risk ap­petite has re­turned at the start of the week fol­low­ing an aw­ful run which saw the S&P 500 go on a nine-ses­sion los­ing streak, the long­est in nearly 36 years,” Oanda se­nior mar­ket an­a­lyst Craig Er­lam said.

The rand, which tends to ben­e­fit from the global risk ap­petite, ex­hib­ited a slightly weaker bias against the dol­lar, partly re­flect­ing the strong dol­lar en­vi­ron­ment.

ETM An­a­lyt­ics an­a­lyst Ri­cardo da Ca­mara said the lo­cal cur­rency was likely to con­sol­i­date around the cur­rent lev­els after rel­a­tively strong gains in re­cent days.

The rand has out­per­formed other cur­rency pairs in re­cent ses­sions, track­ing the pos­i­tive po­lit­i­cal de­vel­op­ments, in­clud­ing the re­lease of the pub­lic pro­tec­tor’s re­port into state cap­ture.

The lo­cal cur­rency notched up 1,5 per­cent against the dol­lar last week but lost out against the resur­gent pound after the Bri­tish High Court or­dered the gov­ern­ment to con­sult Par­lia­ment be­fore con­sid­er­ing leav­ing the EU.

At 9.14AM, the rand was at 13,5476 to the dol­lar from Fri­day’s 13,5350. It was at 14,9867 to the euro from 15,0033 and 16,8432 to the pound from 16,8965. The euro was at $1,10623, from $1,1063. — BDLive

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