Rand trades at its best level in 18 months
But Barclays Research analysts warn the greenback’s five-year bull run is ending
The rand rallied against major currencies on Thursday, supported by domestic economic data released earlier in the week. Developments in international markets also contributed to the local currency’s strength. The rand reached its best level in 18-months at R12.4809 to the dollar in intraday trade, breaking through the crucial R12.50 resistance level. It was R13.56 to the euro and R15.6097 to the pound, a level last seen in September 2013. The rand’s strength was attributed partly to a weaker dollar. Barclays Research analysts said the greenback’s five-year bull run was ending. But analysts attributed the rally mainly to data released on Wednesday, showing SA’s current-account deficit narrowing to 1.7% of GDP in the fourth quarter, from 3.8% in the third. Rand Merchant Bank analyst Isaah Mhlanga said the narrowing deficit was “a welcome development for an economy thirsty for positive news”. The improved trade balance was a reflection of weak imports as a result of a lack of local de...
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