The rand traded at R16.01 against the US dollar just before 10am on Tuesday as markets remained cautious ahead of Finance Minister Enoch Godongwana’s Budget on Wednesday. Trading Economics said the rand was slightly firmer, supported by rising precious-metal prices and a softer dollar, with investors positioning ahead of Wednesday’s Budget. “Investors are optimistic ahead of Finance Minister Enoch Godongwana’s Wednesday budget,” it said.
Wichard Cilliers, head of Market Risk at TreasuryONE, said the currency had been one of the standout performers over the past year. “The rand has been one of the standout performersover the past year, boosted by high precious-metal prices, political stability and signs of economic reform,” he said. However, after a 17% rally, Cilliers said investors were becoming more guarded.
Cilliers said the fiscal update could shape the rand’s next move. “A strong fiscal update could support the currency and keep it near the R16.00 level or stronger. However, any disappointment – or renewed global risk aversion linked to trade tensions – could see the rand give back some of its recent gains.” The rand was just over R16 to the dollar on Tuesday morning.
[paywall]
Chief economist at Investec, Annabel Bishop, said on Monday the rand was largely range-bound. “The domestic currency is treading water around R16.00/USD, with the dollar modestly weaker recently. Uncertainty is very high, and markets have a wait-and-see attitude,” she said.
[/paywall]
All Zim News – Bringing you the latest news and updates.
