The rand was on a firmer footing on Tuesday morning‚ benefiting from a broad retreat in the dollar‚ which has in turn boosted commodity prices.
But the price action was mainly concentrated around the British pound‚ which has come under considerable pressure against a range of currencies‚ including the rand‚ over the past 24 hours on fresh Brexit jitters.
The rand is at its best level to the pound since early November‚ after British Prime Minister Theresa May suggested in a TV interview that the country faced a so-called hard Brexit.
“[May] stirred the pot with comments that she was not interested in keeping bits of membership of the EU‚” said Wichard Cilliers‚ head of dealing and a director at TreasuryOne.
“German Chancellor Angela Merkel stated that if the Brits want to trade in the EU‚ they’ll need to accept freedom of movement. All of this has caused markets to fear a hard Brexit once again.”
Brexit fears have had a marked effect on some of JSE-listed stocks‚ including Brait and Capital & Counties.
At 9.09am‚ the rand was at R13.6343 to the dollar from Monday’s close at R13.6717. It was at R14.4500 to the euro from R14.4528‚ and at R16.5696 to the pound from R16.6282.
The euro was at $1.0600 from $1.05773. – TMG Digital
Rand perks up as dollar retreats
The rand was on a firmer footing on Tuesday morning‚ benefiting from a broad retreat in the dollar‚ which has in turn boosted commodity prices.
But the price action was mainly concentrated around the British pound‚ which has come under considerable pressure against a range of currencies‚ including the rand‚ over the past 24 hours on fresh Brexit jitters.
The rand is at its best level to the pound since early November‚ after British Prime Minister Theresa May suggested in a TV interview that the country faced a so-called hard Brexit.
“[May] stirred the pot with comments that she was not interested in keeping bits of membership of the EU‚” said Wichard Cilliers‚ head of dealing and a director at TreasuryOne.
“German Chancellor Angela Merkel stated that if the Brits want to trade in the EU‚ they’ll need to accept freedom of movement. All of this has caused markets to fear a hard Brexit once again.”
Brexit fears have had a marked effect on some of JSE-listed stocks‚ including Brait and Capital & Counties.
At 9.09am‚ the rand was at R13.6343 to the dollar from Monday’s close at R13.6717. It was at R14.4500 to the euro from R14.4528‚ and at R16.5696 to the pound from R16.6282.
The euro was at $1.0600 from $1.05773. – TMG Digital
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