Rand steps back after recent rally
JOHANNESBURG - The rand succumbed to pressure from global risk and allocation shifts – in response to rising United States Treasury yields – as well as profit taking according to NKC Research.
On Wednesday, the Johnson & Johnson (J&J) Covid-19 vaccination programme was launched with President Cyril Ramaphosa and health minister Zweli Mkhize among the first to receive the jab.
This came after AstraZeneca vaccinations were placed on hold earlier this month amid concerns that the jab doesn’t provide adequate protection against the local variant.
Ramaphosa indicated on Wednesday that 80,000 doses of the J&J vaccine were being prepared for distribution.
Having recently hit a one year high against the greenback, the near-term outlook for the rand will be dominated by the budget speech which will take place on February 24, but over the longer term we continue to expect a policy-led correction in the dollar which will support the rand.
At the close of local trade, the rand quoted 0.33 percent weaker at R14.71/$, after trading in range of R14.53/$ - R14.83/$.
BUSINESS REPORT ONLINE