In a day of volatile trade‚ the rand remained firmer against the dollar in the late afternoon on Tuesday despite failing to break through an important resistance level earlier in the session.

The rand could not break through R14.62/$‚ the best level for the year reached last month‚ after the euro strengthened to more than the crucial $14.50 level against the greenback. The euro also could not hold on to the stronger levels on Tuesday‚ with the dollar recovering strongly in late afternoon trade.

The rand was at a best level of R14.6307/$ on the day. The euro reached $1.1465.

At 3.28am‚ the rand was trading at R14.7061 to the dollar from R14.7297 at Monday’s close. It was at R16.7440 against the euro from R16.8201 previously‚ and at R20.9815 against the pound from R20.9877 previously.

The euro was at $1.1385 from a previous close of $1.1410.

The dollar strength was unexpected ahead of the quarterly earnings season in the US starting this month‚ which could be the worst since the recession of 2008. But the greenback’s firmness could be temporary.

“Given that the trade weighted rand is 30% undervalued‚ there was plenty of scope for a larger rand recovery‚ especially if the underlying fundamentals continue to evolve‚” Bidvest Bank analysts said.

The global sentiment toward emerging markets had improved‚ but questions remain on how sustainable the inflows would be‚ they said.