Rand unchanged as market mulls Kganyago’s view that currency is ‘overvalued’
The rand was steady in quiet trade at midday on Thursday ahead of the Easter long weekend, with trade expected to only pick up next week. After weakening on the Reserve Bank’s expected interest-rate cut on Thursday, the rand appeared to be stabilising at present levels, with the greenback trading flat against the euro. The local currency had shown little reaction to Reserve Bank governor Lesetja Kganyago’s surprise view that the rand might be "overvalued". Previous governors of the Bank treaded cautiously on predictions about the rand, as that might be interpreted as a signal to the market. TreasuryOne analyst Andre Botha said that while the rand weakened to R11.80/$ on Wednesday, the reaction since then has been muted. "There are quite a few market players that believe the rand could still break below R11.50," he said. But Kganyago’s view received some support from Capital Economics analysts, who think that the rand’s rally has now run out of steam. The rand has gained 4.92% agains...
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