The ZAR roller coaster ride

Wednesday morning’s early trading saw a decline in the rand against the dollar as Chicago Fed President Charles Evans maintained his aggressive position on inflation.

The rand was trading at 18.1875 against the dollar at 07:16 GMT, down 0.93% from its previous close.

In comparison to a basket of major currencies, the dollar index increased by almost 0.4% to 114.600.

According to experts, the dollar is reaching new two-decade highs almost every day, which is keeping emerging market currencies weak.

The ZAR is set to capitalize on the moment the (now significantly overpriced) USD loses its topside momentum, whether it be owing to a change in Fed language or a normalization of risk sentiment resulting from favorable events in Europe or China.

The Top-40 and larger all-share indices on the stock market both decreased by more than 2% in early trading.

Early deals saw a poorer performance from the government’s benchmark 2030 bond, whose yield increased by 9.5 basis points to 10.875%.