The rand was under pressure and continued to weaken against the dollar on Thursday‚ extending the trend after the medium-term budget policy statement speech.
The rand shed up to 4.77% after the speech disappointed on Wednesday‚ surpassing negative expectations.
The rand plummeted against the dollar to levels last seen in December 2016‚ with expectations that the European Central Bank (ECB) will announce its quantitative easing stance later on Wednesday‚ adding renewed weakness to the currency.
The market has been divided on what the ECB is expected to do with its quantitative easing programme. It could either start reducing the bond-buying programme or continue buying‚ although at a much slower pace.
Emerging-market currencies are steady and treading carefully against a softer dollar in the build-up to the ECB announcement.
At 11.32am the rand was R14.1827 to the dollar from Wednesday’s R14.0502.
It was at R16.7493 to the euro from R16.5850 and at R18.7190 to the pound from R18.6180.
The euro was at $1.1810 from $1.1804.
by Reitumetse Pitso – BusinessLIVE
