Rand starts year well but headwinds remain

The rand, which has surged 3% against the dollar so far in 2019, is set for another year of wild swings.

The local currency, the fourth most volatile major currency in 2018, will trade between R12.75 and R16 to the dollar in 2019, according to a Bloomberg survey of traders. Based on Wednesday’s R13.88, that implies it could appreciate by 8%, or lose more than 13%.

The currency gained another 0.5% on Wednesday, after reaching its strongest level in more than a month two days earlier. It was 0.2% weaker at R16 to the euro and 0.2% stronger at R17.71 to the pound.

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