The dollar gave back some of its previous gains, trading within a tight range in the session, also coming off its recent highs as global markets continued to focus on the Fed’s two day policy meeting for direction. The dollar index touched a low of 93.052 and ended the session fairly firm at 93.204.
The euro found some reprieve and posted marginal gains as investors made room for risk appetite following dollar weakness. The common currency touched a high of $1.1749 and closed the session at $1.1723.
The pound also found support and made some modest moves upward as the safe haven run eased. The cable reached a high of $1.3692 and finally ended the session at $1.3659.
There is light at the end of the tunnel. The South African rand made an attempt to reclaim its position in its early trade, bolstered by positive sentiments surrounding Evergrande’s debt tragedy. However, it was later seen giving up its marginal gains to end the session slightly weaker. This was on the back of rating agency Fitch’s comment about the consequences that the country might face if it doesn’t implement measures to stabilize the debt. The rand closed the session at R14.8246/$ after reaching a low of R14.6488/$
In the way of data today, we have local inflation print which is expected to give rand some direction. Internationally, we have existing home sales in the U.S
Expected ranges for the day:
- USDZAR: R14.6200/$ to R14.8200/$
- EURUSD: $1.1700 to $1.1750
- GBPUSD: $1.3600 to $1.3680
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