Softer dollar boosts rand before SONA
The dollar has softened during the course of the day, with the rand trading back around the R17.65 handle at the moment. Our local currency looked shaky during the early morning hours after it opened just below the R17.80 mark, but a softer dollar led to the rand grinding lower ahead of tonight’s SONA address. The euro and pound are both 0.8% stronger for the day, currently trading at 1.0780 and 1.2185 against the dollar, respectively.
Other markets
US equities have followed the Eastern markets and opened up stronger, with the S&P500 and Dow Jones both up 0.5%. This positive sentiment towards equities complements the risk-on move we have seen in EM’s today, as most EM currencies are trading on the front foot. Treasury Yields have dipped after the weekly US Jobless claims release, with the print slightly contracting the recent payroll numbers that caused the dollar to surge stronger. Gold is currently flat for the day, trading at $1,882, while other PGMs are slightly softer.
#SONA #CurrencyMarkets #ZAR #Equities
