Rand marginally weaker

JOHANNESBURG. — The rand was marginally weaker yesterday morning, but remained within its recent trading range despite the materially weaker dollar environment.

The local currency has battled to find its footing this week partly due to concern about a possible cabinet reshuffle that could include the sensitive finance position.

On the other hand, pressure has continued to mount on the dollar amid lack of clarity on economic policy from US President Donald Trump. Instead, the US president has so far largely promoted isolationist and protectionist policies, which some believe have the potential to harm global trade.

The weaker dollar has played out favourably for some commodity prices, with platinum heading back towards $1,000/oz.

“It’s pretty hard to have a strong and consistent view when there doesn’t seem to be a clear theme,” Standard Bank trader Warrick Butler said in a note.

At 8.58am, the rand was at 13,4827 to the dollar from Tuesday’s 13,4733. It was at 14,5355 to the euro from 14,5491 and at 16,9329 to the pound from 16,9486. The dollar was at $1,0780 to the euro from $1,0798.

Market participants will keep a watch on the US Federal Reserve, which wraps up its two-day policy meeting later in the day, although no change in expected on interest rates. —