CAPE TOWN – The rand is on a serious comeback crusade, compared with what was witnessed over the past weeks, as it smashed through the R15 a dollar level with ease, during intraday trade on Wednesday.
At 2:25pm on Wednesday the domestic unit was trading at R14.86 a dollar amid a swirl of positive sentiment.
The rand got its some much-needed impetus from the surprise 3.1 percent growth in South Africa’s second-quarter gross domestic product (GDP), which effectively means the country has avoided a technical recession.
A late slump in the trade-weighted greenback added to the rand’s momentum, according to NKC Research. “Data respite aside, the local unit remains on a very fragile footing as ongoing US-Sino trade tensions continue to weigh on risk sentiment, as Beijing and Washington still have not agreed upon a meeting date for a new round of talks.”
TreasuryONE economist Andre Botha said while the domestic currency was buoyed by the GDP number, events from further afield had cast some doubts on the global economy with weaker than expected US PMI data.