The Rand has not had a great start to the new year, but has regained some strength on Wednesday. File picture: Ian Landsberg / Independent Newspapers .
The Rand has not had a great start to the new year, but has regained some strength on Wednesday.
The Rand was trading at R18.57 against the Dollar on Tuesday, down 1.6% on its previous close as the US posted its best daily performance.
It should be noted that elevated US Treasury yields and a cautious turn in risk sentiment boosted the dollar, according to Reuters.
On Wednesday morning at around10.30am, the Rand was trading at R18.55 to the Dollar. The Rand was trading at R23.50 to the Pound and R20.35 to the Euro.
Futuregrowth Asset Management believes that interest rates have peaked at 8.25% and will be cut by the Reserve Bank by the middle of 2024.
The asset manager told its clients that it believes that the last policy statement by the Reserve Bank monetary policy committee was hawkish.
Futuregrowth argues that we will see an interest rate change only in the middle of the year as the Reserve Bank needs time to evaluate the risks and see how the country will perform.
The risks that one should look at are load shedding, logistical or infrastructural issues, weather impacts, and how other countries' economies impact when interest rates are cut in their state.
IOL News
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