The rand crept lower on Tuesday morning, suggesting consolidation following a sharp rally over the past week.The dollar, which has been the centre of the market’s focus amid uncertainty over the US interest rate trajectory in 2018, is showing signs of recovery after coming under sustained pressure recently.The rand made an unsuccessful attempt to push through the R13.30/$, leaving some analysts scratching their heads about the currency’s next move. "The rand has managed to hold onto most of last week’s gains. This leaves it 2% or so stronger than where its high-yield [peer] currencies are trading, with nothing obvious to justify the premium," Rand Merchant Bank currency strategist John Cairns said."The longer the rand can remain strong, the more the market will reset to these levels, but it is too early to dismiss the risks of a reversal."Economic data are relatively thin, though UK inflation figures could influence the pound versus the rand.The Bank of England has previously hinted...
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