Rand climbs to nine-week high vs dollar

Johannesburg – The South African rand firmed to its strongest in early nine weeks on Thursday, with market sentiment boosted by optimism over recovering growth as economies reopen after coronavirus lockdown.

The rand traded at 17.3100 per dollar at 06:15 GMT, up nearly 0.4% from its previous close and its strongest since March 27.

The positivity over a global economy recovery trumped immediate concerns about a stand-off between the US and China over Hong Kong.

“Tension between the US and China is growing,” Bianca Botes, executive director at Peregrine Treasury Solutions, said in a client note. “In spite of this, the rand is holding rather firm … while seeking momentum to break another leg stronger in the short term.”

On Sunday, SA president Cyril Ramaphosa announced the easing of the country’s lockdown from June 1, which will allow the majority of the economy to return to full capacity.

Be the first to comment

Leave a Reply

Your email address will not be published.