/ 25 August 1997

Rand makes a comeback

MONDAY, 11.30AM

The rand sategd a comeback on Friday, strengthening more than 5c against the dollar to below R4,70 on a combination of export activity, a weaker dollar and Reserve Bank intervention follwoing its fall to its lowest-ever level against the dollar on Thursday.

The rand ended Friday at R4,6940 to the dollar after traders were forced to sell dollars after finding themselves long on the US currency after Thursday’s run on the rand. Good export demand and Reserve Bank intervention helped push the rand below R4,70, a level the Reserve Bank seems to want to maintain.

The Johannesburg Stock Exchange, meanwhile, had another poor day as it followed Wall Street’s fortunes to post a 1,5% loss on the all share index on Friday.

The industrial index shed 1,2% or 110,3 points to close at 9 054, while the financial index saw a dizzying drop to 10 159,9 points, 1,77% or 183,4 points down on the previous day.