Rand breaks psychological R17/$ level

JOHANNESBURG – The rand on Wednesday accelerated past the psychological R17 level against the US dollar on the back of improving global sentiment and a weakening greenback as a result of continuing large-scale protests in the country as well as protracted tensions with China.

The rand rose 0.19percent to exchange hands at R16.92 against the dollar by 5pm, the currency’s strongest run since the coronavirus pandemic lockdowns in March and Moody’s decision to downgrade South Africa’s rating to sub-investment grade.

The rand also inched up 0.16 percent to R21.32 to the pound sterling and 0.13percent to R18.99 against the euro.

Old Mutual investment strategist Izak Odendaal said that the rand benefited from improving global sentiments, with more economies now opening up after imposing strict restrictions to contain the spread of the pandemic in March.

“The rand’s strength is mostly just a shift in global risk appetite, as is normally the case. We have seen global markets rallying quite a bit on the weakness in the dollar,” Odendaal said.