South African rand dips as dollar gains on Powell renomination

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A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016. REUTERS/Philimon Bulawayo

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JOHANNESBURG, Nov 22 (Reuters) – South Africa’s rand dipped on Monday, as the U.S. dollar rose on Federal Reserve Chair Jerome Powell’s nomination for another term.

At 1603 GMT, the rand traded at 15.7575 against the dollar, roughly 0.1% weaker than its previous close.

In the absence of local drivers, the rand takes its cue from global factors, with the outlook for U.S. monetary policy a major theme.

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Some analysts said Powell staying on as Fed chair would mean greater scope for U.S. interest rate hikes. read more

The South African Reserve Bank (SARB) raised its main lending rate last week for the first time in three years, but that has done little to buttress the rand, with some traders instead focusing on the fact the SARB…

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