BD: Rand slumps more due to US rate hike expectations
THE rand was 10c weaker against the dollar late on Tuesday as investor expectations for a US interest-rate increase on September 21 accelerated — from 0.5% to 0.75%.
On Friday last week, US Federal Reserve chair Janet Yellen and vice-chair Stanley Fischer said at an annual economic symposium in Jackson Hole, Wyoming, that the world's largest economy was resilient enough to withstand an interest-rate increase this year.
Meanwhile, investors are waiting for US nonfarm payrolls data, due on Friday, that might shed light on the timing and pace of future Fed interest-rate hikes.
At 3.28pm, the rand was at R14.5006 against the dollar from R14.4086 at the previous close.
It was at R16.1794 against the euro from R16.1221 previously‚ and at R19.0149 against the pound from R18.8811 previously.
The euro was at $1.1157, from $1.1189 at its previous close.
