Rand firms in early trade, may break R15/$

The rand strengthened against the dollar in early trade on Wednesday, threatening to break through the R15/$ level for the first time in a week. 

The local currency opened at R15.05/$ and reached R15.02 to the greenback at 10:44. 

Andre Botha of TreasuryONE said in a morning note that while the rand was on the front foot, it still faced headwinds. 

"There is still sanctions talk [by the US against] Russia, trade tensions are still very much in evidence between the US and China, and the Argentinian peso is still on a steep slippery slope," he said.  

He said the local currency may be helped by the fact that the fall in the Turkish lira had stopped for now. Botha said this was due, in part, to expectation that the Turkish Central Bank could in the next few days hike interest rates quite aggressively.

"While Turkey was in some part, the reason why the rand initially weakened could the lira also be, in some bizarre twist of fate, a catalyst for the Rand to strengthen?"

NKC African Economics, in a note to clients, said they expect the rand to trade in a range between R15.00/$ and R15.30/$. 

Local economic data set for release on Wednesday include the business confidence index and retail figures. 

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
16.81
(-0.26)
ZAR/GBP
21.34
(-0.12)
ZAR/EUR
19.02
(-0.13)
ZAR/AUD
11.73
(-0.21)
ZAR/JPY
0.15
(+0.60)
Gold
1681.70
(+0.13)
Silver
17.39
(+0.17)
Platinum
815.55
(+0.35)
Brent Crude
41.90
(+5.78)
Palladium
1949.00
(+0.59)
All Share
54722.38
(+2.85)
Top 40
50199.80
(+2.79)
Financial 15
11467.53
(+4.66)
Industrial 25
74264.52
(+2.52)
Resource 10
49969.31
(+2.29)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
19% - 196 votes
I am taking a hit, but should be able to recover in the next year
26% - 268 votes
My finances have been devastated
29% - 294 votes
It's still too early to know what the full effect will be
26% - 260 votes
Vote