Rand breaks below R14/$ overnight after Fed chair hints at rate cut

The rand strengthened to under R14/$ overnight after Fed Chairperson Jerome Powell hinted the bank may be preparing to cut interest rates.

"[Powell] surprised markets with an unexpectedly dovish address to congress [on Wednesday], following the solid employment data from the economy," said Bianca Botes of Peregrine Treasury Solutions in a morning note to clients. 

"The testimony quickly saw the rand strengthening by close to 0.8% in the afternoon, with the rally continuing in the overnight session to break below R14.00/$."

The local currency was trading at R13.95 at 08:15 on Thursday morning, its strongest level since late April 2019. 

"The rand is likely to lean towards more strength with the R13.80/$ level now becoming a realistic target."

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.94
+0.7%
Rand - Pound
19.33
-0.0%
Rand - Euro
17.27
+0.6%
Rand - Aus dollar
11.60
+0.6%
Rand - Yen
0.12
+0.8%
Gold
1,636.66
+0.9%
Silver
18.69
+1.9%
Palladium
2,121.00
+3.8%
Platinum
862.50
+1.1%
Brent Crude
84.06
-2.5%
Top 40
57,621
+0.6%
All Share
64,026
+0.6%
Resource 10
56,997
+1.4%
Industrial 25
79,272
-0.3%
Financial 15
14,209
+1.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders