Rand continues to strengthen against dollar

The rand returned to its strengthening path on Tuesday 16 August as a weaker dollar lent support.

US inflation data, which are due for release later in the day, will play a key role in the US Federal Reserve’s decision to hike rates, which will affect the dollar’s performance against other currencies.

Trading Economics expects US inflation to have held steady at 1% in July on an annualised basis.

UK inflation and other economic data are also due out on Tuesday. The data are expected to reflect the effect of Brexit on the economy.

“Inflation data are the biggest news for today as we’ll see if the UK and the US have been able to muster up any of it during July. I believe sentiment will drive the market today, and a test of R13.20/$ is on the cards,” TreasuryOne dealer Phillip Pearce says.

The rand has gained more than more than 15c in the past 24 hours against the dollar as well as advancing against the euro and the pound.

At 9.10am‚ the rand was at R13.2724 the dollar from R13.2993 at the previous close.

It was at R14.9130 against the euro from R14.8750 previously‚ and at R17.1105 against the pound from R17.1329 previously.

The euro was at $1.1236, from at $1.1183 at its last settlement.

By Andries Mahlangu for www.bdlive.co.za

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