Rand calmer as it tracks global markets

The rand was calmer on Wednesday morning in line with global markets as traders pondered their next move following a volatile week on the financial markets.

“The markets seemed to have taken a bit of a breather after the hectic week it has had‚ with the rand pushing lower and looking at testing the R14.00/$ level again‚” Treasury One dealer Andre Botha said.

Analysts expect local retail sales‚ which will be released in the afternoon‚ to have little effect on the currency‚ which looks on track to end a five-year losing run against the dollar despite the recent volatility.

This is supported by the view that South African economic fundamentals are picking up and the sense that the rand is much oversold.

Retail sales are forecast to have grown at an annual rate of 0.7% in September‚ according to Trading Economics‚ from 0.2% in August.

Asian share markets were mostly higher but prices of industrial metals‚ which had a decent run in recent days‚ pulled back on Thursday morning.

At 9.02am‚ the rand was at R14.1515 to the dollar from Tuesday’s R14.1834. It was at R15.2136 to the euro from R15.2055 and R17.6616 to the pound from R17.6579

The euro was at $1.0750‚ from $1.0721.
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