The rand was a lot calmer on Monday morning, a far cry from last week during which the local currency dipped as much as 5% to the dollar, as markets digested the implications of the medium-term budget policy statement. "It is impossible to [predict] where the rand should trade after the budget, but this morning’s levels seem a lot more justified than Friday’s overshoot," Rand Merchant Bank currency strategist John Cairns said. Foreigners have sold a net R6.2bn worth of local bonds over the past week, helping to drag the local currency to lows of 14.33/$, its lowest in about year. But the rand managed to recoup some of its losses in early trade, helped in by the relatively steady dollar, which was the currency of choice during last week’s trade. For the new week, currency markets will have plenty of economic data to digest, as well as the announcement of the new US Federal Reserve chair, who will take over from Janet Yellen, whose term expires in February. Fed governor Jerome Powell ...
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