Dodd-Frank repeal quizzed

Currencies fared little despite a steady dollar.

South Africa’s rand has had a soft start to the session after data showed on Tuesday that Africa’s most industrialised nation had slipped into recession for the first time in eight years.

The news raised the prospect of further credit rating downgrades and heaped pressure on President Jacob Zuma, who is already facing corruption allegations.

However, the rand recovered most of its losses to trade 0.2 percent weaker after central bank data showed Forex reserves grew unexpectedly.

“The downgrade question is definitely one of the factors,” said SEB’s Hammarlund, referring to Moody’s next assessment scheduled for release tomorrow. Positive cycle “But if you look at the rand and emerging markets in general over the longer term, you are still looking at a positive cycle – the worries about the rand will be short lived.”

Russia’s rouble and Mexico’s peso also weakened against the dollar.

In Poland, central bank policy makers are scheduled to conclude their interest rate setting meeting, though analysts expect no change until the third quarter of 2018 given the benign outlook for inflation.

Interest rates are at an alltime low of 1.5 percent. – Reuters INCREASED violence and corruption in central Africa could be the result of the recent decision by the US Securities and Exchange Commission not to enforce a rule requiring US companies to report their use of conflict minerals, warn Congolese civic groups, rights groups and US senators. “The conflict minerals rule has played a critical role in reducing violence in mining areas in the Democratic Republic of the Congo,” said US Senator Chris Coons. The conflict minerals reporting rule, part of the Dodd-Frank financial regulations law, has largely been successful in ensuring that minerals worth trillions of dollars don’t benefit armed rebel groups blamed for human rights abuses. – AP