The rand was firmer against the dollar on Monday morning‚ breaking through the critical R13 level on a softer dollar.
The local currency last traded at this level before the Pravin Gordhan was fired as the finance minister‚ which led to SA’s credit rating being downgraded to junk status.
The French elections dominated global trade as markets adjust to the results of the first round of the French presidential election. Centrist candidate Emmanuel Macron is in the lead‚ ahead of his far-right rival Marine le Pen.
The market seems to be excited about the chances of pro-growth‚ pro-euro Macron becoming the next president‚ with the euro strengthening.
Rand Merchant Bank analyst John Cairns said the election seemed to have gone according to expectations but markets rallied on the relief that the worst outcome had not played out yet. The risk-on appetite that has helped global equity futures gain 0.5%-1.0% has also boosted currency markets.
At 9.02 the rand was at R12.9745 to the dollar from Friday’s R13.0051 and at R14.0738 to the euro from R14.1563 and at R16.5854 to the pound from R16.6672.
The euro was at $1.0847 from $1.0904.
Rand returns to levels seen before cabinet reshuffle
The rand was firmer against the dollar on Monday morning‚ breaking through the critical R13 level on a softer dollar.
The local currency last traded at this level before the Pravin Gordhan was fired as the finance minister‚ which led to SA’s credit rating being downgraded to junk status.
The French elections dominated global trade as markets adjust to the results of the first round of the French presidential election. Centrist candidate Emmanuel Macron is in the lead‚ ahead of his far-right rival Marine le Pen.
The market seems to be excited about the chances of pro-growth‚ pro-euro Macron becoming the next president‚ with the euro strengthening.
Rand Merchant Bank analyst John Cairns said the election seemed to have gone according to expectations but markets rallied on the relief that the worst outcome had not played out yet. The risk-on appetite that has helped global equity futures gain 0.5%-1.0% has also boosted currency markets.
At 9.02 the rand was at R12.9745 to the dollar from Friday’s R13.0051 and at R14.0738 to the euro from R14.1563 and at R16.5854 to the pound from R16.6672.
The euro was at $1.0847 from $1.0904.
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