Rand pushes past R14.50/$ as Reserve Bank signals future cut

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The Reserve Bank said it now expects to cut interest rates 25 basis points by the end of the first quarter of 2020

The rand weakened past the psychologically important R14.50/$ level on Thursday afternoon, falling slightly after the Reserve Bank indicated it may cut interest rates by the end of the first quarter of 2020.

The rand pushed to R14.5187/$ following Kganyago's comments, but by 3.30pm it was 0.83% weaker at R14.4951/$. The currency was 0.5% weaker at R16.1101/€ and 0.56% down at R18.3039/£. “The rand has benefited from improved sentiment towards riskier assets but will continue to be affected by idiosyncratic factors, such as domestic growth prospects and policy settings,” Kganyago said.

 

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