Rand touches three-month peak
THE RAND rose to its strongest level in nearly three months yesterday as lingering worries about US President Donald Trump’s protectionist stance and uncertainty over his fiscal policies dragged on the dollar.
At 5pm, the rand was bid at R13.2945 to the dollar, 2.22c firmer than at the same time on Tuesday. The currency hit R13.23 in the session, its strongest level since November 9.
Worries over the impact of Trump’s protectionist trade stance have helped lure investors to emerging markets.
The rand was extending gains made in the previous session after the central bank kept the key lending rate steady at 7 percent on Tuesday, saying that domestic growth remained constrained.
In fixed income, the yield for the benchmark government bond due in 2026 rose.