The South African rand reached a new best level for 2003 in early morning trade on Thursday as it broke below 7,60 rand per dollar to touch 7,5868 rand per dollar.
This was its best level since January 2001.
The rand’s recent rally began on October 23 last year, the day better than expected September producer inflation was released. The rand on that day touched a worst level of R10,26 per dollar.
The rand first broke above R10 per dollar on November 22, 2001, when it reached 10,0025, but then recovered to trade below 10 in the subsequent days.
The rand moved above R11 per dollar on December 6, 2001, above R12 per dollar on December 14, 2001, and above R13 per dollar on December 20, 2001, when it reached a record worst level of R13,86 per dollar in overnight trade. The record worst level against sterling was 20,0866 and against the euro was 12,4790 was also reached the same day.
The rand ended 2001 at R12 per dollar and broke back below R11 per dollar on March 4, 2002. This was the day the commission established to investigate the causes of the rand’s collapse started its public hearings.
The worst level last year was 12.2250 rand per dollar reached on March 8, the day before the Zimbabwe Presidential election started. As there was not as much violence as feared, the rand then recovered steadily and broke back below R10 per dollar on May 17. The rand reached a best level of R9,6350 per dollar on June 4 and traded below R10 for most of June and July.
The leak of a draft mining charter proposing “excessive” transfer of assets to the previously disadvantaged community in late July then saw foreign investors sell off South African assets and the rand formed a “double top” at R10,95 per dollar on August 21 and 22. – I-Net-Bridge