Rand stands its ground as Stats SA announces rise in SA unemployment

DURBAN – The rand traded slightly stronger than the dollar on Tuesday but weaker than the pound and euro as Statistics South Africa announced that the South African unemployment rate climbed to more than 30 percent.

The domestic currency ranged between R17.19 – R17.49 to the dollar.

At 5pm the rand was bid 10c stronger than the same time bid on Monday at R17.24 against the dollar. Against the pound,it was 3c weaker at R21.61 and bid at R19.54 versus the euro.

FXTM senior research analyst Lukman Otunuga said that given how the emergency budget had little fiscal space to manoeuvre, Finance Minister Tito Mboweni was walking on the tightest of ropes.

“Whatever the outcome of the speech tomorrow, it will certainly have an impact on the South African Rand which has slightly gained against the Dollar today. Can the rand return to its former glory? Well, this will depend on South Africa’s economic outlook and global risk sentiment,” said Otunuga.