South African bonds were slightly weaker on Wednesday morning following the softer rand.
The greenback was steady against the euro after weakening earlier after comments from one of President Donald Trump’s economic
advisers triggered a sell-off. The adviser accused Germany and Japan of devaluing their currencies to the detriment of the dollar. The Trump administration has indicated it would be in favour of a weaker dollar as that would boost US exports.
Wichard Cilliers, the head of dealing and a director at TreasuryOne, said the comments resulted in the dollar index dropping below the 100 level. It was above this level for most of 2017.
Local political risk remains a factor amid speculation about changed at the National Treasury after President Jacob Zuma’s state of the nation address on February 9.
The Federal open market committee will give some indication as to where the Federal Reserve thinks the world’s largest economy is heading when it completes its two-day meeting later on Wednesday.
"The US Fed meeting will give us an idea of whether they’ve taken note of the first 12 days of the new administration and, if they have, the impact it may have on the expected number of three rate hikes this year," said Cilliers.
At 9.05am the bid on the R186 was at 8.84% from Tuesday’s 8.825% and that of the R207 bond was bid at 7.995% from 7.7995%.
The rand was at R13.4862/$ from R13.5163/$.
BDlive
The greenback was steady against the euro after weakening earlier after comments from one of President Donald Trump’s economic
advisers triggered a sell-off. The adviser accused Germany and Japan of devaluing their currencies to the detriment of the dollar. The Trump administration has indicated it would be in favour of a weaker dollar as that would boost US exports.
Wichard Cilliers, the head of dealing and a director at TreasuryOne, said the comments resulted in the dollar index dropping below the 100 level. It was above this level for most of 2017.
Local political risk remains a factor amid speculation about changed at the National Treasury after President Jacob Zuma’s state of the nation address on February 9.
The Federal open market committee will give some indication as to where the Federal Reserve thinks the world’s largest economy is heading when it completes its two-day meeting later on Wednesday.
"The US Fed meeting will give us an idea of whether they’ve taken note of the first 12 days of the new administration and, if they have, the impact it may have on the expected number of three rate hikes this year," said Cilliers.
At 9.05am the bid on the R186 was at 8.84% from Tuesday’s 8.825% and that of the R207 bond was bid at 7.995% from 7.7995%.
The rand was at R13.4862/$ from R13.5163/$.
BDlive
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