The rand opened at R13.72/$ on Friday morning, and strengthened as much as R13.67 to the greenback in early morning trade.
Last Updated at
Rand claws back losses, steadily making its
way back to R13.60/$
The rand opened at R13.72/$ on Friday morning, and strengthened
as much as R13.67 to the greenback in early morning trade.
“The rand is likely to remain range bound with steady
directional moves on the back of risk appetite and overall market sentiment,”
said Bianca Botes, corporate treasury manager at peregrine Treasury Solutions.
“We expect the rand to steadily make its way back to
the R13.60 level as the dollar remains subdued.”
This past week US President Donald Trump took centre stage
with the US government shutdown and
Sino-US trade negotiations still ongoing.
“The political turbulence in the US saw the dollar
slide against all major currencies as we headed in to the final days of this
“This saw the rand claw back some of its losses from
earlier in the week. The local unit remains on a steady footing against the
greenback, having traded within a range of R13.65 to R13.98 for the most of the
year so far,” Botes noted.
Markets did not pay much attention to discussions on nationalising
the Reserve Bank this week. In other local developments inflation declined to
4.5%, helped by lower fuel prices and a stronger rand, Botes explained.
points to an unchanged interest rate at the next MPC meeting,” she added.
Further abroad, the US housing market disappointed, with
monthly home sales dropping 6.4% in December, while initial jobless claims
dropped to 199k from the previous 217k.
“While there seems to be a light at the end of the
tunnel for Brexit, with Ireland ready to back Theresa May next week, the ECB
has warned of waning economic growth in the greater EU.
“With politics remaining in the spotlight, the
competition between local political parties is set to heat up as we head
towards the general election in May, and sifting through the noise will be
crucial for market participants,” Botes said.