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Johannesburg - The rand recovered some of Friday’s losses on Monday morning‚ breaking back through the psychological R10.00/$ barrier to trade in single digits against the dollar.
“The rand was severely oversold at the R10.20 level that we saw last week and was unsustainable so we can expect the pull-back we’re seeing at the moment‚” said PSG head of trading Ockert van Niekerk.
“That said‚ I’m surprised we’ve gone back through the R10 level again so quickly because overall the fundamentals haven’t changed much.”
The rand crashed to a four-year low of R10.28 against the dollar on Friday morning‚ as emerging market and commodity currencies came under renewed pressure.
“I don’t expect a huge appreciation and we will probably do some work around these levels‚” said Van Niekerk.
At 11:28‚ the rand was bid at R9.9682/$‚ from a close of R10.0550 on Friday.
The local currency was bid at R12.9894 to the euro from its previous close of R13.0595 and was at R15.2209 against sterling from R15.2731 at its previous close.
The euro was bid at $1.3026 from $1.2991 at Friday’s close.
