adminJohannesburg. – THE rand pared its losses against the rampant dollar at midday yesterday, with analysts hopeful of further improvement in coming sessions. Earlier the dollar index, which measures the greenback’s performance against a basket of world currencies, hit a 12-year high. Dollar gains came amid the expectation that US interest rate hikes were imminent following a string of economic data pointing to the sustained strength of the US economy.
A slight improvement in risk sentiment towards midday, however, provided some necessary relief for the rand, which has lost 50c against the dollar since last Friday when the US released a robust jobs report.
Other emerging-market currencies also benefited. At noon the rand was at 12,1771 to the greenback, which was 10c firmer than its overnight close of 12,2541. Against the euro the rand was at 12,8879 from a previous close of 12,9217 and was at 18,2263 against the pound from a previous close of 18,2861.
“We could see the rand firm as far as 12 to the dollar in the short term,” Rand Merchant Bank said, maintaining, however, that any positive data from the US would see the dollar advance again. – BDlive.
Online Reporter