The European Central Bank announced that it cut interest rates by 10 basis points to a record low of 0.05%.
The Reserve Bank putting rates up by 0.25% was enough to boost investor confidence and rally the local currency bond market.
Unrest in Ukraine and the Middle East has seen gold rebound 9.4% this year while the Fed warns benchmark rates could rise sooner than expected.
Growth forecasts for the Sub-Saharan region have been revised downward as it will likely feel the impact of reduced monetary stimulus in the US.
US unemployment data may show enough recovery for the Federal Reserve to begin reducing monetary stimulus.
The rand has gained following a drop which appeared to have been overdone.
Continued speculation of imminent tapering from the US Federal Reserve sees negative data impacting developing markets.
Ben Bernanke’s successor had better make sure she gets every syllable right as she communicates her intended actions to outsiders.
The rally of the rand in recent days will likely continue to lose steam as the market looks out for a decision to cut monthly bond purchases.
The rand has reached its highest level since August 9 following Lawrence Summers removing his bid for Federal Reserve chairperson.
Monetary policy decisions by the US Federal Reserve and SA Reserve Bank will keep economists and investors on the edge of their seats this week.
