Rand trades below R17 to the dollar, ahead of Sarb decision

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Rand trades below R17 to the dollar, ahead of Sarb decision
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[CURRENCY] The rand firmed overnight to trade below R17 to the US dollar on Thursday morning – its strongest level since late August. Moneyweb Currency

The rand firmed overnight to trade below R17 to the US dollar on Thursday morning – its strongest level since late August. The local currency was trading at R16.93 at around 06:00, buoyed by news out of the US that the Federal Reserve may taper its interest rate hikes. Now, the focus locally will be on South African Reserve Bank governor Lesetja Kganyago’s repo rate announcement on Thursday afternoon.

The Fed also flagged concerns around the US possibly going into a recession – sentiments that some market commentators and economists see as another indication of the Fed wanting to temper the hiking cycle. Read:Fed staff warn chance of US recession in next year is now near 50% On the local front, however, SA’s latest headline inflation number came in higher for October on Wednesday.

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