The rand remained on the front foot on Friday afternoon‚ reaching a fresh 20-month best level of R12.4369 to the dollar in intra-day trade.
The local currency has been making relentless gains since the release of positive economic data earlier in the week.
Currency experts are‚ however‚ convinced that the rand’s rally will be short-lived.
TreasuryOne dealer Andre Botha said that because it is Friday there could be some position squaring which could result in the rand losing some ground.
Rand Merchant Bank analyst John Cairns said markets are usually cautious about keeping aggressive positions over a weekend‚ so a counter-trend reversal can be expected.
Global factors are also not supportive for further rand moves as global equities had faltered. “The dollar has actually managed to bounce overnight after its own relentless run weaker‚” he said‚ adding that above all‚ the rand looked “overextended”.
At 3.56pm‚ the rand was at R12.4690 to the dollar from R12.4652; at R13.4635 to the euro from R13.4396; and at R15.5546 to the pound from R15.6077.
The euro was at $1.0798 from $1.0782. — TMG Digital/BusinessLIVE
Rand reaches 20-month best level on positive economic data
The rand remained on the front foot on Friday afternoon‚ reaching a fresh 20-month best level of R12.4369 to the dollar in intra-day trade.
The local currency has been making relentless gains since the release of positive economic data earlier in the week.
Currency experts are‚ however‚ convinced that the rand’s rally will be short-lived.
TreasuryOne dealer Andre Botha said that because it is Friday there could be some position squaring which could result in the rand losing some ground.
Rand Merchant Bank analyst John Cairns said markets are usually cautious about keeping aggressive positions over a weekend‚ so a counter-trend reversal can be expected.
Global factors are also not supportive for further rand moves as global equities had faltered. “The dollar has actually managed to bounce overnight after its own relentless run weaker‚” he said‚ adding that above all‚ the rand looked “overextended”.
At 3.56pm‚ the rand was at R12.4690 to the dollar from R12.4652; at R13.4635 to the euro from R13.4396; and at R15.5546 to the pound from R15.6077.
The euro was at $1.0798 from $1.0782. — TMG Digital/BusinessLIVE