Share

Robust rand races to under R13.40/$

Cape Town - The rand raced on Wednesday morning to levels last reached in the fourth quarter of 2015 against the US dollar.

By 07:10 the local unit was trading at R13.37/$ from R13.66 on Monday and an overnight close of R13.41 in New York. Tuesday was a public holiday in South Africa.

Against the pound and euro the local unit was trading at R17.47 and R14.91 respectively, levels last seen in the first quarter of 2013.

The rand, however, was clearly not on its own in moving stronger, with many other emerging markets tagging along, with the moves also exaggerated due to the holiday season in Europe, said Adam Phillips of Umkhulu Consulting in his daily currency report.

Weak US productivity numbers for the April to June period also supported emerging market currencies.

He said the market does not even seem to consider what coalitions are going to come about because of the local elections.

"In terms of charts and technicals, there seem to be little support until we get to 13.10 on the ZAR. Given where we have been this year, this is an extraordinary move reminiscent of late December 2001 and all the way through 2002."

Phillips said the last couple of months have seen very sobering forex rates for exporters, "while importers have been happy to cover commitments on the concern that at any time a sudden reversal might happen".

"This has just not come through at all, although in my opinion importers must keep buying it down."


Read Fin24's top stories trending on Twitter:
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.95
-0.2%
Rand - Euro
20.46
+0.0%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.3%
Platinum
911.00
+1.6%
Palladium
1,008.15
+0.6%
Gold
2,217.47
+1.0%
Silver
24.78
+0.5%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders