Rand steady

JOHANNESBURG. — The rand was weaker at midday yesterday, but off intraday weakest levels, following the US Federal Reserve’s decision to keep interest rates unchanged.

The dollar earlier firmed on the likelihood of a signalled June hike, and a possible second in September after the Fed indicated that economic conditions in the US had improved, despite the first quarter’s disappointing growth.

“As expected the Fed kept rates on hold, but the hawkish statement that followed has led quite a few market commentators to pencil in an interest-rate hike for June,” TreasuryOne currency trader Andre Botha said.

The market is now eyeing today’s US nonfarm payroll data to indicate if the first quarter was a blip or the possible start of a weakening trend in the US economy.

At 11.40am the rand was at 13,4866 to the dollar from Wednesday’s 13,4179, trading between 13,41 and 13,54. The rand was at 14,7441 to the euro from 14,6169 and at 17,398 to the pound from 17,2766.

The euro was at $1,0934 from $1,0893 amid indications French centrist presidential candidate Emmanuel Macron strengthened his position against right-wing candidate Marine Le Pen in Sunday’s election following a television debate.

Local factors were also at play with markets following the deliberations at the World Economic Forum (WEF) in Durban for clues on any deviations from stated government policy. — BDLive.