The rand was stronger at midday on Tuesday on a weaker dollar and positive market reaction to UK Prime Minister Theresa May’s keenly awaited “hard Brexit” speech.
The rand gained more than 20c against the dollar‚ with the strong move to a firmer level surprising analysts.
May’s speech was interpreted by the currency market to be emerging-market friendly. The pound also gained nearly 1% against the dollar despite expectations of a weakening.
According to excerpts of May’s speech given to the media‚ the UK will make a clean break with the EU and expressed a wish “to be more outward-looking than ever before”.
May said she wanted the UK to be the best friend and neighbour to Europe. The UK aimed to build relationships with old friends and new allies alike — “A country that reached beyond the borders of Europe too‚” May said.
At 11.32am‚ the rand was at R13.4850 to the dollar from Monday’s close of R13.6908. It was at R14.3945 to the euro from R14.5200‚ and at R16.4044 to the pound from R16.4990.
The euro was at $1.0675 from $1.0602.
The pound was at $1.2166 from $1.2047 after briefly dipping below $1.20 on Monday.
The rand was also supported by stronger commodity prices with the gold price jumping 1.27% to $1‚217 an ounce.
“Although commodities were overstretched at present levels‚ R13.35/$ continued to be a realistic target for the rand‚” Momentum SP Reid analysts said.
The rand started the week on a shaky ground‚ retreating more than 1% on Monday due to uncertainty ahead of Donald Trump’s inauguration as US president on Friday. – TMG Digital
Rand gains 20c on May’s Brexit speech as dollar weakens
The rand was stronger at midday on Tuesday on a weaker dollar and positive market reaction to UK Prime Minister Theresa May’s keenly awaited “hard Brexit” speech.
The rand gained more than 20c against the dollar‚ with the strong move to a firmer level surprising analysts.
May’s speech was interpreted by the currency market to be emerging-market friendly. The pound also gained nearly 1% against the dollar despite expectations of a weakening.
According to excerpts of May’s speech given to the media‚ the UK will make a clean break with the EU and expressed a wish “to be more outward-looking than ever before”.
May said she wanted the UK to be the best friend and neighbour to Europe. The UK aimed to build relationships with old friends and new allies alike — “A country that reached beyond the borders of Europe too‚” May said.
At 11.32am‚ the rand was at R13.4850 to the dollar from Monday’s close of R13.6908. It was at R14.3945 to the euro from R14.5200‚ and at R16.4044 to the pound from R16.4990.
The euro was at $1.0675 from $1.0602.
The pound was at $1.2166 from $1.2047 after briefly dipping below $1.20 on Monday.
The rand was also supported by stronger commodity prices with the gold price jumping 1.27% to $1‚217 an ounce.
“Although commodities were overstretched at present levels‚ R13.35/$ continued to be a realistic target for the rand‚” Momentum SP Reid analysts said.
The rand started the week on a shaky ground‚ retreating more than 1% on Monday due to uncertainty ahead of Donald Trump’s inauguration as US president on Friday. – TMG Digital
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