The rand steadied on Thursday morning‚ continuing a trading pattern that has been in play for the better part of the week.
The outcome of the Reserve Bank’s monetary policy committee meeting will be the highlight in the afternoon and could potentially move the markets.
Economists generally expect the committee to leave interest rates on hold for now‚ although there seems to be a shift in perceptions that some say could lead to a cut in the months ahead.
The election of Cyril Ramaphosa as the new leader of the ANC in December lifted a cloud that had hung over SA for months‚ improving market sentiment‚ which was reflected in the much stronger rand.
The stronger rand acts as a buffer against consumer inflation‚ which the Bank closely monitors when deciding on rates.
The local currency has strengthened a lot since the last monetary policy committee meeting‚ although so have international oil prices‚ which potentially complicates the committee’s task when projecting inflation.
There is also uncertainty around the budget‚ which Finance Minister Malusi Gigaba will present on February 21.
At 9.50am the rand was at R12.3122 to the dollar from a close of R12.2929‚ at R15.0196 to the euro from R14.9714 and at R17.0170 to the pound from R16.9883.
The euro was at $1.2198‚ from $1.2184.
-BusinessLIVE
