The rand on Thursday moved above R6 to the dollar for the first time since late November last year on the weaker euro against the dollar, Absa economist Christ Hart said.
At 9.25am, the rand was quoted at R6,0128, its weakest level since November 24 2004, from Wednesday’s closing level of R5,9226. The euro was last quoted at $1,3224 from the European unit’s late New York trade on Wednesday of $1,3262.
“The rand is weakening in tandem with the fall in the euro against the United States dollar. Since the result of the US election in November, the euro has gone in one direction against the US dollar, while the rand has strengthened against the US dollar consistently since mid-October,” Hart said.
The rand is likely to rebound to R6,25 to the dollar during its current move before resuming its strengthening trend, he added.
After this correction is over, Hart sees the rand strengthening to R5,50 to the dollar. — I-Net Bridge