Although the rand strengthened to below R14 to the dollar on Tuesday, analysts expect the currency to remain extremely volatile. The rand reached R13.9337 a dollar again on Tuesday, the same level it was at a week ago, when the National Prosecuting Authority laid fraud charges against Finance Minister Pravin Gordhan. The rand weakened from R13.90/$ to R14.20 on October 11. It reached a weekly weakest level of R14.4963/$ on the following day and has since then gradually recovered, following support expressed for Gordhan amid indications a deal on the charges may be in the offing. The rand has been unable to break through the R13.20/$ level so far this year. Technical analysis shows R13.44 is the next important resistance level for a possible assault on R13.20. The rand was supported by a softer dollar on Tuesday as well as renewed dovish views expressed by US Federal Reserve officials. Analysts expect the local currency to remain volatile over the short term. The rand has swung to be...
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