Rand trades marginally firmer as optimism grows about stronger levels
The rand was slightly firmer against the dollar in late afternoon trade on Monday, in what analysts describe as a consolidation phase before attempting a break through R13.20/$ again. The rand’s attempts to break through R13.20/$ has failed on at least four occasions since August 2016. A firmer rand would benefit sectors such as banks and retailers on the JSE, as it would reduce inflation and the possibility of further interest-rate increases. But it would affect rand hedges with predominantly foreign earnings negatively. The rand held strong against the dollar in choppy trade for most of the day, as uncertainty remains a major factor in global currency trading. At 3.38pm the rand was at R13.3486 from R13.3512. It was at R14.1857 against the euro from R14.1901 and at R16.7109 against the pound from R16.6665. The euro was unchanged at $1.0627. "The more times the R13.20/$ level is tested, the greater the probability of breaking through the level," analysts at Nedbank Corporate and In...
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