Rand loses ground as risk-off sentiment prevails
The rand was weaker at midday on Tuesday as the market awaits Wednesday’s rate decision by the US Federal Reserve. "The move away from risk assets and towards safer bonds seems overdone as the market only sees a 6% chance of a rate hike tomorrow night by the US Fed’s federal open market committee (FOMC)‚" TreasuryOne head of dealing Wichard Cilliers said.At 11.31am‚ the rand was at R13.6806 against the dollar from its previous close of R13.6402.The local currency was at R15.1035 against the euro from R15.0749 and at R20.9610 against the pound from a previous close of R20.9382.The euro was at $1.1041 from a previous close of $1.1053.Mr Cilliers said the risk-off shift could be attributed to investors being more concerned about how the US Fed interprets the recent soft US economic data and global financial markets as well as the tone and words used in the statement."It looks as if the rand has missed its opportunity to record some gains‚ and bias towards weakening looks set to continue‚" he said. - RDM News Wire, BDlive..
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