Rand takes a breather

Cape Town - The rand took a breather on Wednesday from its strong push to below R12.30/$ in the previous session, and is currently trading at around R12.45 against the greenback.

“The rand is slightly on the back foot as we consolidate,” said TreasuryOne dealer Phillip Pearce on Tuesday morning.

“Emerging markets are generally doing well, but the rand has been on its own mission since the December conference, so we may be moving back inline once again.”

The rand ended local trade on Tuesday at 12.45/$ and at R12.46 in overnight trade in New York.

By 10:25 the local unit was trading 0.3% firmer at R12.42 to the greenback, after briefly touching R12.51. 

The rand has been strengthening since mid-November, when it was trading at R14.47 to the US currency. 

It gained in the days before and after Deputy President Cyril Ramaphosa was elected ANC leader in a tightly-fought race at the party's national conference in Johannesburg, to finish December about 10% stronger on positive sentiment. 

The strong run meant positive news for motorists, with the firmer rand causing a drop in the price of petrol

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