The rand prolonged its current rally on Wednesday, strengthening to a contemporary 20-month excessive in opposition to the US greenback.
At 11.53am, the rand traded at R17.21/$, 0.3% stronger than its earlier shut and its strongest degree since early February 2023.
Analysts have partly attributed the rand’s present power to optimistic sentiment within the wake of rate of interest cuts by the South African Reserve Financial institution and US Federal Reserve.
“We’re prone to proceed to commerce in a R17.20/R17.40 vary for now,” stated Andre Cilliers, forex strategist at TreasuryOne.
On Thursday, South Africa-focused traders will shift their focus to August producer inflation figures, which is able to shed additional mild on the extent to which value pressures are easing.
Slowing shopper inflation helped persuade the Sarb to chop charges final week.
Earlier on Wednesday, central financial institution knowledge confirmed a composite main enterprise cycle indicator rose 0.7% month on month in July. The indicator displays car gross sales, enterprise confidence, cash provide and different elements.
JSE rises
The JSE’s Top40 index was up 1.5% after touching a brand new excessive earlier within the session.
South Africa’s benchmark 2030 authorities bond was barely weaker, with the yield up 1.5 foundation factors to eight.86%. — Bhargav Acharya, with Ankika Biswas, (c) 2024 Reuters
