DStv Channel 403 Friday, 08 November 2024

Rand strengthens against the dollar

Money

* Editor's note: This article is updated each time new information becomes available.

JOHANNESBURG - The rand has surged sharply against the US dollar to its strongest level in six weeks.

This as the US Federal Reserve voted on Wednesday to pause its aggressive campaign of interest rate hikes despite "elevated" inflation.

READ: Rough road ahead for the rand

Higher interest rates in the US strengthen the dollar but have a negative effect on emerging market currencies, including the rand.

But with US inflation easing, investors expect a pause on rate hikes.

This has seen the rand strengthen by 2 percent on Wednesday, at one point hitting R18.25.

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