Johannesburg - The South African Reserve Bank expects volatility in the rand to continue although it does not believe intervening in the market would be effective, governor Gill Marcus said on Tuesday.
"We have not attempted to intervene directly in the foreign exchange market as we do not believe that such intervention would be effective," Marcus said in a speech made at the European Economics and Financial Centre in London.
At the close of markets on Tuesday the rand reached a fresh high for the year. It extended gains as emerging markets continued to take advantage of a weaker US currency.
The rand broke through resistance at the 10.50 level as investor sentiment favoured risky, high yielding assets while traders were biding time ahead of FOMC minutes on Wednesday and domestic production data on Thursday.
Analysts said the 10.41 level would be key to watch for signals of further gains.
"The market has broken sharply today. We think the current consolidation phase will give way to more (dollar) weakness," Neil Irving of 4Cast said in a market note. "The next targets are at 10.41 then 10.3615."
"We have not attempted to intervene directly in the foreign exchange market as we do not believe that such intervention would be effective," Marcus said in a speech made at the European Economics and Financial Centre in London.
At the close of markets on Tuesday the rand reached a fresh high for the year. It extended gains as emerging markets continued to take advantage of a weaker US currency.
The rand broke through resistance at the 10.50 level as investor sentiment favoured risky, high yielding assets while traders were biding time ahead of FOMC minutes on Wednesday and domestic production data on Thursday.
Analysts said the 10.41 level would be key to watch for signals of further gains.
"The market has broken sharply today. We think the current consolidation phase will give way to more (dollar) weakness," Neil Irving of 4Cast said in a market note. "The next targets are at 10.41 then 10.3615."