Rand breaks through critical R13/$ level
Euro’s gains on the victory of pro-EU French presidential candidate Emmanuel Macron and the weaker dollar buoy the local currency
The rand started the week on a positive note, firming more than 20c against the US dollar, approaching the stronger levels seen before SA’s sovereign credit-ratings downgrades at the beginning of April. The rand gained 0.82% to R12.8771 to the dollar on Monday from a previous R13.1286 — its best level so far this month. It traded at R12.30/$ before the double downgrades from S&P Global and Fitch, turning at just less than R14/$. The main catalyst for the rand on Monday was the weaker dollar, with the euro gaining after the victory of pro-EU French presidential candidate Emmanuel Macron in the first-round election at the weekend. This raised the possibility of Macron beating right-wing candidate Marine Le Pen in the final round on May 7. It was really just a weaker dollar in general driving the rand, said Standard Bank analyst Warrick Butler. “But we also saw a sense of nervousness dissipating due to more market-friendly noises from our new finance minister and the continued positive...
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