Rand nears levels last seen in April 2009

Published Nov 22, 2012

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The rand again threatened to breach R9 to the dollar yesterday.

The currency has sailed close to that level a few times over the past week, from a recent best level of R8.1 in July.

Mohammed Nalla, the head of strategic research at Nedbank Capital, said it last closed at R9 in April 2009.

Nalla said the weakness late in the day might have been due to US traders, who had long rand positions, selling ahead of the Thanksgiving weekend in the US.

The failure of European leaders to agree on a bailout for Greece, after a 12-hour conference, unsettled markets.

The next meeting will take place on Monday. Negative sentiment about South Africa has affected the rand’s fortunes in recent months.

It has parted company with the currencies of other emerging markets, as potential investors rethink the country’s political outlook. – Ethel Hazelhurst

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