Rand strengthens to one-week high

THE RAND climbed more than 1 percent yesterday to its firmest level in nearly a week as demand for emerging currencies continued to improve in the wake of renewed political uncertainty in the US. Government bonds dipped.

At 6.05pm, the rand had firmed 1.24 percent against dollar to R13.3225, just off its strongest level since May 5, putting some distance between the recent R13.45 resistance level it has struggled to break this week.

The currency brought gains for the week to nearly 3 percent as it outpaced most of its emerging market peers.

“The rand failed at (R)13.70, and it was looking overbought at those levels, so it looks as if its just moving within the ranges while there’s no bad news out there,” said currency trader at Rand Merchant Bank, Jim Bryson.