The rand was slightly weaker on Monday morning ahead of the US Federal Reserve’s interest rate decision later in the day.
The Fed is expected to increase rates to 0.75% from 0.5%.
Rand Merchant Bank analyst John Cairns said in a note that global markets would absorb the Fed’s interest rates hike "without any problems".
He said that the market was so certain the Fed would hike rates that attention was now shifting to when it was likely to act again.
"What we really need to watch is the market pricing a further 55% probability of a further two or more hikes next year," said Cairns.
He said that investors would pay attention to the projections for 2017 and chairwoman Janet Yellen’s statement.
Nedbank Corporate and Investment Banking (CIB) analysts said the rand had shown resilience recently but trade could be cautious ahead of local data on Wednesday.
Statistics SA will release inflation data at 10am. US retail sales data are also due for release later in the day.
At 8.41am, the rand was at R13.6460 against the dollar from Tuesday’s R13.6048. It was at R14.5303 to the euro from R14.4591 and R17.2877 to the pound from R17.2266.
The euro was at $1.0647 from $1.0627.
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The Fed is expected to increase rates to 0.75% from 0.5%.
Rand Merchant Bank analyst John Cairns said in a note that global markets would absorb the Fed’s interest rates hike "without any problems".
He said that the market was so certain the Fed would hike rates that attention was now shifting to when it was likely to act again.
"What we really need to watch is the market pricing a further 55% probability of a further two or more hikes next year," said Cairns.
He said that investors would pay attention to the projections for 2017 and chairwoman Janet Yellen’s statement.
Nedbank Corporate and Investment Banking (CIB) analysts said the rand had shown resilience recently but trade could be cautious ahead of local data on Wednesday.
Statistics SA will release inflation data at 10am. US retail sales data are also due for release later in the day.
At 8.41am, the rand was at R13.6460 against the dollar from Tuesday’s R13.6048. It was at R14.5303 to the euro from R14.4591 and R17.2877 to the pound from R17.2266.
The euro was at $1.0647 from $1.0627.
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