CURRENCY
What analysts expect next after rand logs third consecutive week of gains
The rand capped its third consecutive week of gains against the dollar on Friday, with analysts saying it may be set for further strength as concern about emerging markets unwinds. Interest rate increases in the Philippines and Indonesia on Thursday provided the market with further reason to dip into risk assets, analysts maintain, while the fears about global monetary liquidity that had put emerging-market currencies under serious strain in August now appear overdone. The rand has the prospect of strengthening towards R13.80 to the dollar in coming weeks, and while issues of dollar liquidity have abated somewhat, structural issues remain, said Nedbank Corporate and Investment Banking strategist Mehul Daya. The rand has firmed to R14.15 to the dollar in the three weeks to Friday, from R15.23 — its best performance since February. It is, however, still down more than 12% to the greenback so far in 2018. Tighter monetary conditions imposed by the Federal Reserve and weaker commodity p...
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