Rand stronger but faces turbulent 2019
The local currency will trade between R12.75 and R16 to the dollar in 2019, according to a Bloomberg survey of traders
The rand, which has surged 3% against the dollar so far in 2019, is set for another year of wild swings. The local currency, the fourth most volatile major currency in 2018, will trade between R12.75 and R16 to the dollar in 2019, according to a Bloomberg survey of traders. Based on Wednesday’s R13.88, that implies it could appreciate by 8%, or lose more than 13%. The currency gained another 0.5% on Wednesday, after reaching its strongest level in more than a month two days earlier. It was 0.2% weaker at R16 to the euro and 0.2% stronger at R17.71 to the pound. Last year, it traded as strong as R11.50 as Cyril Ramaphosa's rise to the country’s presidency fueled a wave of optimism about the economy. That was quickly undone and it slumped to a two-year low of R15.69 in September as a range of factors from a looming trade war between China and the US and debate locally about land reform dented sentiment. With the country set to hold a general election in May analysts say domestic issue...
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