SA rand rallies

JOHANNESBURG. — The rand fared better yesterday morning in line with its emerging-market peers such as Russia, suggesting a pick-up in global risk appetite.

The local currency was about 20c stronger to the dollar compared with its intra-day lows on Wednesday as commodity prices rebounded from their recent lows. The price of international benchmark Brent crude was back above $50 a barrel in a move that helped the Russian rouble gain just shy of 2 percent over the past 24 hours. The Brazilian real also perked up, as did the Turkish lira and Indian rupee.

“I still believe that long term the rand will weaken, but it is becoming increasingly difficult to find an entry point that holds,” Standard Bank trader Warrick Butler said.

“In fact yesterday’s price action has set up a reversal pattern, indicating more rand strength will follow over the next couple of days.”

The rand has had a wild ride since at least March 27 when President Jacob Zuma abruptly recalled former finance minister Pravin Gordhan from an overseas investor roadshow, before firing him a few days later in a controversial Cabinet shuffle.

At 9.03am, the rand was at 13,4459 to the dollar from Wednesday’s 13,4790, at 14,6258 to the euro from 14,6440 and at 17,3967 to pound from 17,4462. The euro was at $1,0878 from $1,0866.