Rand strengthens to two-week highs

THE RAND rallied to its highest in nearly two weeks against the dollar yesterday as investors anticipating a rate hold by the US Federal Reserve kept demand for the local currency alive.

At 5pm, the rand was bid at R13.8652 to the dollar, 15.77c stronger than at the same time on Monday.

The local unit was at its firmest levels since September 8, according to Thomson Reuters data.

The rand also drew support from some calming of local political tensions, and from Moody’s comments that the probability of a rating downgrade to junk was now less than 50 percent.

Meanwhile, the SA Reserve Bank is expected to leave interest rates unchanged when it announces its decision tomorrow.