Rand trades firmer as oversold dollar could weaken more
The rand is likely to make a second attempt at reaching R12.54/$ in coming sessions, Momentum analysts say
The rand was firmer in late afternoon trade on Wednesday, and was poised to hit 18-month best levels if the dollar continued to lose ground. The rand was on the front foot for most of the day, supported by positive economic data. The current account deficit narrowed to 1.7% of GDP in the fourth quarter, from 3.8% in the third, the best level in six years. The consumer price index (CPI) dropped to 6.3% in February from 6.6% in January, the lowest rate in more than a year. "The rand remains resilient, supporting a better inflation and interest rate outlook," said Old Mutual Multi-Managers analyst Izak Odendaal. At 3.46pm the rand was at R12.5938 against the dollar from R12.6716. The rand was at R13.5993 against the euro from R13.7121 and at R15.6628 against the pound from R15.8241. The euro was at $1.0799 from $1.0807 after hitting a daily firmest level of $1.0819 in intraday trade. The rand had previously failed to reach the technical area at between R12.52/$ and R 12.54/$, analysts ...
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