The rand struggled to find a path on Tuesday morning, with dealers finding little reason to engage the market ahead of the mid-term budget on Wednesday. "The rand continues to tread water as participation remains on the low side, understandably so given the fireworks from the recent political mire that has subsided over the last few sessions," Standard Bank trader Oliver Alwar said. The global backdrop was equally subdued, with both the euro and the British pound stabilising at weaker levels against the dollar. Rand Merchant Bank currency strategist John Cairns said further gains in the dollar had the potential to weaken the rand. "Our work has highlighted that the major driver of the long-term rand cycles is the value of the dollar. Quite simply, if the dollar rallies beyond the levels it achieved at the start of this year then USD/ZAR will rise quite significantly," Cairns said. The dollar index, which measures the greenback against a basket of major currencies, held steady at mul...
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