Starting the new year off with a bang, the South African rand continued to firm on Thursday, breaking below the 8,50 per dollar level to touch a new 16-month best level of 8,4630 against the greenback.
The last time it was at this level was September 3, 2001. Dealers said the rand’s strength was being driven by dollar export orders.
“There’s nothing really going on at the moment…just exporter orders which are driving the rand firmer. But the currency remains very volatile,” a local forex dealer said.
Economists said the rand remained volatile and could still go either way. “Until it becomes more stable, South Africa is unlikely to see any real foreign investment,” one analyst commented. – I-Net Bridge