Rand set for biggest weekly gain against dollar in nine months

“The exact catalyst behind why the dollar is weakening is not easy to point out, but the main contender is that fading fears over trade tensions are providing traders with a reason to take profit on dollar positions that have been building for months,” said Jameel Ahmad, global head of currency strategy and market research at FXTM

“Another round of reassuring comments from authorities in China, indicating that the yuan will not be used as a weapon during trade tensions has also been looked upon positively by the market.”

The stronger rand helps to keep inflation in check, although it tends to hurt exporters.

The continued momentum in the rand came after the Reserve Bank kept the interest rate on hold, as it weighed the rising inflation outlook against the slowing economy.

At 10.20am, the rand was at R14.2786 to the dollar, from R14.2832. It was at R16.8159 to the euro from R16.8273, and at R18.8804 to the pound from R18.9568. The euro was at $1.1776 from $1.1777.