DURBAN – The rand traded within a tight R14.73-to-R14.86 range on Monday after posting sustained gains over the most recent sessions, the momentum seemed to be with the local unit as it breached the sub-R15/$ level on Friday.
Research Analyst at Nedbank CIB Reezwana Sumad said the local unit encountered sustained support throughout the session after breaching the sub 15 level and posted significant gains to reach a best level of 14.755 by the time of the local close.
Sumad said this move was primarily attributable to the positive market outlook regarding trade talks between the US and China thus far as the movement gained momentum as some of those with long dollar positions also exited their positions.
“The current level of the local unit is likely to attract some dollar buying interest, technically, an attempt on R14.60 remains a likely scenario,” said Sumad.
Chief economist at Investec Annabel Bishop said global growth perceptions remained a key driver for emerging market currencies, with rand volatility likely to remain in force.