The rand broke through R12 to the dollar at midday on Wednesday as the euro gained on the dollar following upbeat eurozone economic data. A weaker dollar usually results in a stronger rand, with local political factors playing a lesser role on the day. ANC president Cyril Ramaphosa is attending the World Economic Forum meeting at Davos. The euro firmed in anticipation of a more hawkish stance from the European Central Bank (ECB) at its meeting on Thursday. This would be justified by positive economic data that would reflect strong economic growth in the area, analysts said. Consumer confidence in the region rose by 1.3 points in January, which was well above the market consensus of 0.6 points and the highest level since August 2000. The pound also hit $1.40 on the day, on optimism over the UK economy. The market is now awaiting purchasing managers’ index (PMI) data later in the day, which will reflect business conditions affecting employment, production, new orders, prices, supplier...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now