The US Federal Reserve (Fed) surprised the market with a lower-than-expected 50 basis point interest rate hike on Thursday, 5 May. After pricing a chance of a 75bps hike, the market was somewhat disappointed by the less aggressive Fed stance.
The rand strengthened into and just after the announcement on Thursday evening to R15.61/$, but has already given back most of the post release gains to trade in the region of R15.74.
“We expect this to support a rand consolidation and look to a range of 15.25-15.75 for the rand until we get some direction from US inflation numbers and the South African Reserve Bank,” says Ryan Booysen, MD, DG Capital Forex.
Subscribe to our free newsletter
Stay at the forefront of financial advisory excellence with MoneyMarketing's weekly insights. As a professional adviser, you'll receive carefully curated content that enhances your practice and client relationships without cluttering your inbox. Our commitment to delivering only relevant, actionable intelligence helps you make informed decisions that drive your business forward. Join our community of leading financial professionals today and transform your practice with our complimentary newsletter—because your success is our priority.
