Rand strengthens to two-month high
THE RAND rose to its highest in two months yesterday, gaining as much as 2 percent, benefiting from a brighter commodities outlook and uncertainty about the outlook for US economic policy that has favoured emerging market currencies.
At 5pm, the rand was bid at R13.4457 to the dollar, 18.09c firmer than at the same time on Monday, a touch weaker than a session high of R13.41, its highest since November 10.
The gains, seen across emerging currencies, were driven largely by a weaker greenback as it dropped to a five-week low following President-elect Donald Trump’s comments that the dollar’s strength against the Chinese yuan was hurting the US economy.
The rand brushed off disappointing domestic mining production figures, instead focusing on climbing demand for gold globally.