The rand was weaker on Wednesday afternoon after hovering just above R13/$ for most of the day, waiting for triggers to break through the crucial resistance level. The rampant dollar left little room for the rand to appreciate, although it did firm to R12.98 several times, albeit briefly. The dollar firmed on US consumer inflation data which was recorded at 2.5% in January, rather than the expected 2.4%, up from 2.1% in December. This gives the US Federal Reserve more room to increase rates this year. On Wednesday, analysts were more sober in their assessments of a sustainably stronger rand, following optimism expressed on Tuesday that the local currency could firm to R12.80 over the short term. Analysts now say the prospects are much better for the rand to firm against the euro and pound as US Federal Reserve chairperson Janet Yellen’s slightly more hawkish testimony before Congress on Wednesday implied further US rate hikes this year. These would strengthen the dollar and weaken t...
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