Today’s market commentary from Andre Botha, Senior Currency Dealer at TreasuryONE:
The curious movement in the Rand in the past couple of days, where the Rand strengthed against the backdrop of lower global growth and market uncertainty, has finally caught up with the Rand. The Rand also finally buckled under a firmer US dollar and we have seen the currency trading above the R14.00 level again. It seems that the retracement below the R14.00 level stretched the Rand a little far. The sentiment was not helped by weaker than expected mining and manufacturing data.
With little in the way of market data out today, we expect the Rand to drift a little higher as a little market consolidation is currently happening. The overreaching nature of the Rand is in evidence again and we could see the elastic snapping back quite quickly and a move to R14.15 is not out of the question.