Rand lifts to R14.84/$ on a weaker dollar and bets on higher local interest rates
Some economists expect the SA Reserve Bank to raise interest rates by 25 basis points next week
The rand was a lot stronger on Thursday morning, standing out among its emerging-market peers, though its performance came off a very low base. The improved rand came courtesy of a pullback in the dollar, which has been the source of pain for emerging-market currencies in recent months. The dollar has benefited from its status as a safe-haven currency and from higher interest rates, which make the greenback attractive as they boost returns on assets denominated in the currency.
The rand, on the other hand, has had a roller-coaster ride, initially strengthening in February when Cyril Ramaphosa swept to power as head of state, promising a new dawn. It has since reversed course, plunging to a two-year low last week, when the economy slipped into a technical recession for the first time in a decade, punching holes in the "new dawn" narrative. The global environment has also been less forgiving, with intermittent bouts of global risk aversion resulting in bond and equity outflows f...
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