Rand tracks emerging currencies higher

THE RAND firmed yesterday, gaining alongside fellow emerging currencies as the dollar stumbled on expectations that the US Federal Reserve will not raise interest rates this week.

At 5pm, the rand was bid at R14.0229 to the dollar, 27.37c stronger than at the same time on Friday.

“Event risk this week is all about central banks, although almost certainly more about what they say than (what they) do,” Rand Merchant Bank’s currency analyst, John Cairns, said.

Markets price in just a 12 percent chance of a rate rise at the two-day Fed meeting concluding tomorrow, while locally the SA Reserve Bank is expected to leave interest rates unchanged on Thursday.

Government bonds firmed alongside the currency.