Rand strengthens in early trade

The rand strengthened in early trade on Tuesday morning, gaining 0.75% against the greenback.

At 10:21 the local currency was trading at R13.34 to the dollar, after opening at R13.44/$. 

Andre Botha, a dealer at TreasuryONE, said in a morning note that the rand was helped by a strengthening of its fellow emerging market currency the Turkish lira – which on Monday had reached record lows.  

The lira fell to an all-time low of 5.42/$ on Monday. It had strengthened by 1.69% at 10:38 on Tuesday. 

The rand’s gains came as the dollar spot index - its value relative to a basket of six foreign currencies - was 95.18 at 10:17, down 0.2% on the day.

Analysts said the local currency would largely take its cue from politics and sentiment, with no major data set for release apart from manufacturing production at 13:00. 

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