The rand-dollar exchange rate hit a three-week high on Thursday despite expectations. The rand fell 9% against the dollar following President Jacob Zuma’s cabinet reshuffle at the end of March, in which finance minister Pravin Gordhan was replaced by Malusi Gigaba. S&P Global Ratings and Fitch subsequently downgraded SA’s sovereign credit rating to junk. In late trade on Thursday, the rand reached R13.1148/$ from R13.2738/$, as the dollar weakened against the euro. The euro has stabilised at about $1.0750 after the US Federal Reserve’s less-than-hawkish monetary statement in March. A weaker dollar, positive emerging market sentiment and a higher gold price are all driving the rand. The big question, said Old Mutual economist Rian Le Roux, was whether the rand was stabilising, "or is the big hit still coming"?
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