The rand was slightly weaker against major global currencies on Thursday morning, having touched R15/$ overnight, when US Federal Reserve chair Jerome Powell played down the chances of further interest-rate cuts in the US.
His testimony pointed to US rates being kept on hold while the economy is growing, said Peregrine Treasury Solutions corporate treasury manager Bianca Botes in a note. The rand would benefit from lower interest rates in the US, as it supports the carry-trade, where investors borrow in low interest-rate environments to invest in higher yielding bonds, such as those of SA bonds.
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