JOHANNESBURG – THE RAND recovered some lost ground yesterday appreciating 0.14 percent to R15.25 against the dollar as concerns surrounding an extension of the adjusted level 3 lockdown were offset by optimism over vaccine progress.
The rand reached R15.18 to the greenback at some point, boosted by further renewed appetite for South African bonds from foreigners, who made net purchases of R2.7 billion.
However, by 5pm, it exchanged hands at R15.25 against the dollar.
Economists warned that the rand was likely to remain volatile and not provide much countervailing force to rising oil prices.
Oil prices have jumped to $56.70 (R873.77) per barrel from $47.40 per barrel at the start of December for Brent spot. This has placed upwards pressure on South Africa’s fuel prices so far this year and consumer inflation could lift by more than expected.