Rand firmer

The Herald (Zimbabwe) - - Business -

JO­HAN­NES­BURG. — The rand was firmer yes­ter­day morn­ing af­ter a volatile day on the forex mar­kets on Wed­nes­day.

Stan­dard Bank trader War­rick But­ler said that the price ac­tion in the forex mar­kets on Wed­nes­day had beg­gared be­lief.

“It was as­tound­ing to think that — with­out any news or global risk event — cur­ren­cies can move up to 4 per­cent (Turk­ish lira) in a day on the back of a pres­i­dent-elect talk­ing.

“The prob­lem is that we have never ex­pe­ri­enced a per­son like this in charge of what is es­sen­tially the most pow­er­ful coun­try that is and has ever been in this world,” But­ler said.

Ahead of US pres­i­dent-elect Don­ald Trump’s long-awaited me­dia con­fer­ence, traders’ at­ten­tion was fo­cused on what he might say about his poli­cies.

How­ever, an­a­lysts said that while his speech was en­ter­tain­ing he failed to elab­o­rate on his planned growth poli­cies. In­stead he fo­cused on re­buk­ing the me­dia and in­tel­li­gence agen­cies over un­ver­i­fied al­le­ga­tions made against him that showed him in an even more de­plorable light.

Trump’s all-out ap­proach did not ben­e­fit the dol­lar in yes­ter­day morn­ing trade; the cur­rency lost ground af­ter gain­ing ahead of his speech.

The de­cline in the Turk­ish lira hit the rand, along with other emerg­ing-mar­ket cur­ren­cies. There are con­cerns that Turkey’s cen­tral bank will not be able to stop the cur­rency’s de­pre­ci­a­tion. —

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