OWN CORRESPONDENT, Johannesburg | Thursday 11.20am.
THE rand backtracked on some of its gains on Thursday, slipping briefly above the R7 to a dollar mark.
By late afternoon it was trading just short of the mark at R6,99 to the US currency. Analysts said its rally, which began on Monday, has been buoyed by gains in the euro which are likely to continue in the near-term.
The rand has also been boosted by positive news from Zimbabwe, and benign credit and money supply data, giving the bond market its first strong boost in many weeks.
Local markets ended stronger on Thursday, the overall 0,42% or 30 points up.
Industrials were up 0,03% or 2 points by close of play. Financials were 0,06% or 5 points weaker.
Gold shares closed 0,22% or 2 points sharper with gold trading at $272,45 an ounce on international markets.
In a recent poll economists predict that the currency will recover marginally in the final quarter of 2000, but will suffer further depreciation in 2001.
The almost overnight rebound comes after the currency clocked a record low of R7,20 to the dollar last week.
The survey of 14 economists, polled in the last week of May, forecast the rand at R6,75 against the dollar by the fourth quarter – stronger than its current level, but weaker than predicted in an April poll.
The currency is seen averaging R6,72 against the dollar in 2000, but weakening again to R7,06 in 2001 and R7,36 in 2002.
”At this stage the rand could trade down to R6,80 to R6,75, but in the medium term the rand remains under pressure,” Darren Grabham, technical analyst at Rand Merchant Bank said. — Reuters