Who Won the U.S. Presidential Debate?

Steady risk appetite propelled an emerging market currency index to a record high on Monday as investors were convinced that the US Federal Reserve would deliver a big interest rate cut in a week marked by other key central bank policy decisions.

Rising for the fourth session, the MSCI index for EM currencies scaled a lifetime high, after logging its biggest one-day gain since August 19 on Friday. The stocks gauge hit an over one-week high, rising for the third consecutive day.

By midday on Monday, the rand was trading at R17.63/$ - close to its best level since July 2023, when it briefly dipped below R17.60. A year ago, the rand was close to R19, and as recently as April this year it traded at R19.23.

The yield on the benchmark 2030 SA government bond slipped 4 bps. Investors also geared up for a local inflation print this week.

While the US Fed is all but certain to cut rates on Wednesday, the debate is over the size of the cut, with market bets inclining towards 50 basis points (bps), LSEG data showed. This follows last week's 25-bps cut by the European Central Bank.

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