Rand pushes higher as it rides positive global market momentum
Foreigners were net buyers of local bonds worth almost R505m over the past week, helping to nudge local bond yields lower
The rand was reasonably stronger on Monday morning, building on last week’s momentum that saw the currency recover almost 2% against the dollar, thus helping to reduce the probability of another fuel hike.A weaker rand and higher international prices over the past few months have helped push petrol to record highs, prompting the government’s announcement last week that it was looking into ways to help relieve pressure on consumers.SA is a net importer of fuel, which makes it susceptible to the vagaries of the oil market — a situation not made easier by the volatility in the rand-dollar exchange rate.Consumers are feeling the pinch through higher fuel prices, as well as other levies such as increased value-added tax (VAT).But the rand fared a lot better compared with two weeks ago when it flirted with the symbolic R14/$ level, last seen in late November. The relative rand strength came amid stability in global markets, which encouraged investors to buy risky assets, notably shares an...
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