Today’s market commentary from Andre Botha, Senior Currency Dealer at TreasuryONE
The US dollar stayed in a very tight range yesterday which spilt over to the Rand that also traded within tight ranges. The US dollar was kept in check by the US Fed interest rate decision that is upon us this evening. Market expectation is for the Fed to raise interest rates by 25 basis points which should give the US dollar some short-term impetus.
However, the key will be the statement from Jerome Powell following the rate announcement and should the tone turn dovish we could see any US dollar gains being reversed as we head into the New Year. The Fed interest rate decision is one of the last big events for the year as the next round of US-China trade talks is only set for next year. The Fed decision could set the tone for the rest of the year.
The Rand will continue to move in relation to the US dollar as the local cupboard is all but bare, but at current levels, there is some festive cheer in the air as the over recovery in both petrol and diesel is above R1.00 per litre.