Rand hits R11.85/$ as dollar retreats against euro

South African money: Stock Photo
South African money: Stock Photo
Image: Stock Photo

The rand was slightly weaker from firmer overnight levels against the dollar on Thursday morning‚ as the dollar continued to slide against the euro.

The rand was also softer against the euro and the pound.

The dollar was sharply weaker against other major currencies‚ including the yen and pound.

President Donald Trump’s administration signalled that it preferred a weaker dollar on Wednesday‚ setting off reverberations in global currency markets‚ Dow Jones Newswires reported.

Past US administrations had typically tiptoed around the subject of a weaker dollar‚ fearful that explicit views might affect interest rates or scramble cross-border commerce‚ the newswire said.

Earlier‚ Treasury Secretary Steven Mnuchin at the World Economic Forum (WEF) in Davos stated that a “weaker dollar is good for trade”.

At 8.48am the rand was at R11.8878 to the dollar from R11.8551‚ at R14.7937 to the euro from R14.7095 and at R17.0087 to the pound from R16.8809.

The euro was at $1.2444 from $1.2408.

Investec chief economist Annabel Bishop said the rand could test R11.70 soon.

However‚ analysts at Nedbank Corporate and Investment Banking said there may be some pullback in the short term. “The market could be getting ahead of itself and we would look for some local importer interest this morning.”

But the dollar remained on the back foot‚ the Nedbank analysts said.