Rand weaker against the dollar but gaining on the euro

 

The rand was mixed against major global currencies on Wednesday afternoon‚ weakening against the dollar but gaining on the euro and sterling.

Earlier‚ German numbers missed expectations for both imports and exports‚ further evidence of slowing momentum in the eurozone‚ said BK Asset Management. Although the overall trade balance beat expectations‚ this number was misleading‚ making it increasingly clear that unwinding monetary policy stimulus was becoming difficult.

The euro was at $1.18 on Wednesday afternoon‚ but primary focus remains on the possible withdrawal by the US from the 2015 nuclear deal with Iran. Withdrawal from the deal could mean the re-imposition of sanctions against Iran‚ which could disrupt global oil supplies‚ and stoke inflation.

On Monday‚ Brent crude touched its highest point since late 2014‚ at $76 a barrel‚ before pulling back slightly.

Trump would likely withdraw from the deal‚ analysts said‚ although a five-month review process would immediately take effect. “It will be interesting to see what Trump’s approach will have on risk appetite‚ with US equities already struggling to generate much upside momentum‚” said Oanda analyst Craig Erlam.

At 3pm‚ the rand was at R12.5807 to the dollar from R12.5438‚ R14.9252 to the euro from R14.92575‚ and at R16.98 to the pound from R17.0076. The euro was at $1.1863‚ from $1.1923.

Karl Gernetzky – BusinessLIVE

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