The rand was relatively stronger on Wednesday morning, launching another attempt to break through the R12/$ barrier. The impetus this time came from the overseas markets, where the dollar hovered at fresh three-year lows against the basket of currencies. The dollar weakness since the start of the year has caught some off guard, coming in the face of upbeat indicators that back the case for more interest rate increases. Global equity markets showed continued upward momentum, helping the rand, which has been one of the best performing currencies, at least since December. Standard Bank trader Warrick Butler said in an e-mailed note on Tuesday that the rand moves since December — when Cyril Ramaphosa was elected as the new leader of the ANC — were overextended. "There has been so much priced into the rand since Ramaphosa’s victory that the potential for increasingly swift moves are probably highly unlikely. If anything, further strengthening should be more of a grind." At 9.39am, the ra...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.