The rand strengthened overnight as US Fed Chair Jerome Powell stated the US economy is ‘not looking to over-heat any time soon’.
Investors deciphered this as the Fed not looking to raise interest rates as rapidly as previously thought. The People’s Bank of China warmed up their printing press as they added to their Quantitative Easing program (printing money) to help with continued economic growth.
This could see their commodity shopping list grow which would help the rand further, with China being SA’s biggest commodity buyer. It’s a quiet data calendar this week with US Q2 GDP the main focus (Wednesday). Have a great day from a wet and happy Mother city!
All rates quoted are the interbank rates at time of publishing and shown for indicative purposes only. It is important to note that foreign exchange rates fluctuate and that the rates will vary depending on the amount and product purchased and sold.