MARKET PREVIEW: Rand surges on Fed chair’s dovish inflation comments

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The SA currency hops 2% after the US Federal Reserve’s recent policy meeting, joining the global market rally

The rand stabilised at very strong levels on Thursday morning after logging its biggest one-day gain against the dollar since November as traders interpreted the US Federal Reserve chair Jerome Powell’s messaging on inflation and interest rates to be dovish.

The SA currency, which is a proxy of sentiment towards emerging markets, hovered around R17/$ after jumping 2% on Wednesday night after the Fed’s policy meeting at which it hiked rates by 25 basis points as expected...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and TimesLive Premium.

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