MONDAY, 10.30AM
A LATE panic on Friday saw the rand losing almost 3c against a ramapant dollar to close at a new six-and-a-half-month low of R4,6345. Traders believe the pressure will remian on the local currency, with some seeing R4,65 as a possiblity.
The rand’s losses were due, however, to the strength of the dollar against all currencies, withg the rand actually recording its highest level against the deutschmark since November 1989.
The Reserve Bank entered the market briefly on Friday, but only to add liquidity, not to support the currency. The rand has been under pressure since the relaxation of exchange controls on July 1, followed by sharp falls in the gold price and new strength of the dollar.
In money markets meanwhile, the weekly treasury bill rate dropped on Friday to 14,82%, from the previous week’s 14,98%, to take it more than two percentage points below the Bank rate, leading to speculation commercial banks will lead the Reserve Bank in dropping interest rates.