The rand was a little shaky and volatile on Wednesday morning, suggesting that sentiment towards the local currency remained fragile The rand has not yet returned to the levels is was at before last week’s medium-term budget policy statement. The rand was little changed, despite a generally positive global sentiment, which would ordinarily boost the fortunes of the local currency. The concern that Moody’s and S&P Global Ratings could soon strip SA of its investment-grade status on a local-currency basis appears to be keeping the markets on edge, although some analysts say that eventuality could be partly discounted. The rand has had a rough ride since last week, raising the prospect of higher inflation. This came at the time when oil prices kept grinding higher, with Brent crude now fetching $61 a barrel, a two-year high. Rand Merchant Bank currency strategist John Cairns expects continued volatility in the currency this week, but this time the influence is likely to come from the o...
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