The US Dollar edged lower for a 4th consecutive session on the day, as the market continued to digest the outcome from the Fed’s statement, with the US economic data also weighing on the currency. The dollar index slipped to a low of 91.856 before ending the session at 91.864 on the day.
The euro continued to tick higher on the day, returning to levels last seen in the first week of July, as the dollar remained subdued, on the back of somewhat disappointing economic data. The single currency rose to a two weeks high of $1.1892 before ending the session at $1.1886.
The pound sterling also remained elevated on the day, continuing to take advantage of a struggling dollar. The cable extended its winning streak, reaching a high of $1.3982 before ending the session at 1.3960.
The rand found some reprieve and retraced some of its previous losses during intraday trading, strengthening to a low R14.5225/$, post the dovish stance taken by the FED. The local unit touched to a high of R14.7770/$ and closed the session at R14.5494/$.
Emerging market currencies were not left out in the cold, as they were also seen riding the wave and taking advantage of dollar weakness. Investors turned towards riskier assets amidst renewed hope for the rand and emerging market currencies to stabilize.
A quiet day ahead on the data front locally, with an array of key releases to look forward to internationally, which we expect will drive the markets.
Expected ranges for the day:
• USDZAR: R14.5000 to 14.7000/$
• EURUSD: $1.1830 to $1.1900
• GBPUSD: $1.3900 to $1.39800
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