Local currency touches one-week high

THE RAND climbed to a oneweek high yesterday, supported by a weaker dollar and encouraged by comments from the new finance minister indicating no significant change in policy.

Finance Minister Malusi Gigaba has sought to reassure investors since Pravin Gordhan was sacked last month during a political crisis that has hit the currency and led to downgrades by ratings agencies.

By 5pm, the rand had gained 1.3 percent to R13.6450 against the dollar, its strongest level since April 5.

During Monday’s trading, the rand had slid to its lowest level since December but has steadily climbed since then.

Treasury One’s chief currency dealer, Wichard Cilliers, said the local unit was helped by weakness in the dollar.

Meanwhile, government bonds tracked the firmer rand.