JOHANNESBURG - The rand was stable against the dollar‚ along with other emerging-market currencies on Thursday‚ just before midday.
The rand recouped its earlier intraday losses after weakening to R13.71 to a firmer dollar on prospects of improved US growth.
US president Donald Trump’s tax framework that was announced on Wednesday gave the dollar another boost‚ as did comments made by US Federal Reserve chair Janet Yellen earlier this week‚ which raised expectations for higher interest rates.
Emerging-market currencies lost substantially on Wednesday after Trump’s announcement‚ with the rand faring worst.
Rand Merchant Bank analyst John Cairns said emerging-market currencies‚ like the rand‚ had suffered more than just by what the dollar had gained. “The rand has moved far already‚ and with the outsized moves‚ we would normally expect some pullback before the weekend‚ even possibly in late trade today”.
At 11.30am‚ the rand was at R13.5998 to the dollar from R13.5906‚ at R15.9972 to the euro from R15.9626 and at R18.1778 to the pound from R18.1940.
The euro was at $1.1762 from $1.1745.