The news is by your side.

Profit-taking pauses rand rally prior to Ramaphosa stimulus statement

- Advertisement -


The rand paused a rally in the beginning Friday as investors took profits and awaited info on economic stimulus plan by President Cyril Ramaphosa.

At 0630 GMT the rand was 0.2% weaker at 14.31 per dollar, dipping back after powering for the best since August 29 because the central bank left lending rates unchanged and emerging market demand was sparked by easing trade war fears.

Despite holding lending rates at 6.5% for any fourth meeting in a row the Reserve Bank struck a hawkish tone, saying rand weakness amid an emerging market selloff posed a risk to inflation.

The greenback slipped to close 2-1/2 month lows amid a switch in investors’ view which the Sino-US trade conflict wouldn’t normally lead to an instant global shock, driving gains by emerging currencies across the board.

Attention shifts to Ramaphosa’s address due at 0800 GMT where he is set to detail the government’s arrange to revive the economy after it slipped into recession in the second quarter.

Stocks are due open higher at 0700 GMT, while using JSE securities exchange’s Top 40 Futures index up 0.62%.

Leave A Reply

Your email address will not be published.