Battered rand regains its strength

15 July 2016 - 10:06 By Bloomberg, ©BDlive

THE rand strengthened to an 11-week high against the dollar, beating all other emerging market currencies on the day as prospects for stimulus in major economies boosted demand for riskier assets.THE rand strengthened to an 11-week high against the dollar, beating all other emerging market currencies on the day as prospects for stimulus in major economies boosted demand for riskier assets.The currency traded at R14.2398 to the dollar, from R14.4828 at the previous close - a jump of 1.7%.But it weakened against the pound as an expected immediate UK rate cut failed to materialise.The pound firmed against the dollar to £1.3314 - from £1.3147 previously - in the wake of the rate announcement.The Bank of England wrong-footed many investors in all markets, who had expected the first interest rate cut in more than seven years as Britain's economy reeled from last month's Brexit vote.However, the central bank said it was likely to deliver stimulus in three weeks' time, possibly as a "package of measures".The US markets shrugged off the effects of the rest of the world, with positive domestic employment statistics and better-than-forecast profit from bank JPMorgan Chase boosting American stocks for a fifth day.Trading on the JSE appeared directionless early yesterday, suggesting a degree of fatigue following the rally over the past five sessions that had delivered a rise of nearly 4%...

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