SA rand upbeat

JOHANNESBURG. — The rand started a new week on an upbeat note yesterday, spurred by global risk appetite, which was as a result of a pick-up in oil prices.

The domestic currency briefly broke below the 14,90 to the dollar handle yesterday morning, from session lows of 15,27 to dollar on Friday, as Brent crude touched a $42 a barrel.

There has been a strong correlation in the first quarter between the movements in oil prices and a broader financial markets, including equities.

Standard Bank trader said Warrick Butler said the rand was poised for further recovery after closing below R15 to the dollar following the rally in oil prices, which lifted global markets.

The sustained strength in the rand will help to tame consumer inflation, which has breached the Reserve Bank’s 3 percent-6 percent target range. It also helps companies such as Imperial Holdings, which imports vehicles.

At 8.52am‚ the rand was trading at 14,9301 to the dollar from 14,9917 at Friday’s close. It was at 17,0422 against the euro from 17,1195 previously‚ and at 21,0981 against the pound from 21,1665 previously. The euro was at $1,1416 from a previous close of $1,417. One of the key data releases that market participants will watch out for this week is the US consumer price index data for March, due for release on Thursday. The data are key to determining interest rate outlook in the US. — BDLive.