The rand traded at its best levels against the dollar since the end of August after breaking below the R17.10 handle late afternoon. The reasoning behind it could be argued that some global risk-on is happening in the markets, with EM’s across the board trading on the front foot. Another cause might be that the gambling man is betting on the SARB to raise rates by more than the expected 75bps tomorrow. This will be after the October inflation number came out higher than expected and topping the September CPI print. The dollar is slightly softer against the Euro, but the Pound is up 0.7% against the dollar today. We do still have the release of the November FOMC minutes later this evening, which could provide further sparks, and we currently see the dollar track slightly softer against its peers.
