Jumpy rand rocks the greenback
But doesn’t do as well against the euro, showing possible long-term weakness
THE RAND HAS – in typical fashion – done the unexpected by strengthening sharply against the US dollar. That’s left many market watchers baffled, because the fundamentals apparently don’t justify such a strong rand. However, from a technical point of view we look at what the rand’s chart says against the two main international currencies: the US dollar and the euro. The US$/rand chart points to more rand strength to come over the short term, while the euro/rand is currently testing important support. Please note: For more technical analysis by the author on shares, indices and commodities please go to www.themarket.co.za.