Rand closing in on record weakest level
The rand was weaker on Thursday afternoon‚ as the euro softened against the dollar‚ heading towards what could be its worst level on record. Disregarding last week’s abnormal spike to R14.07/$ in Asian trade‚ the worst official level of the rand is R13.84/$‚ recorded in December 2001.US jobs data and the European Central Bank decision to keep rates on hold had little effect on the rand on the day‚ as the data were largely as expected. However‚ the dollar strengthened in response as the data still support a US rate hike this year.At 3.30pm the rand was at R13.5895 to the dollar from a previous close of R13.4446‚ after earlier weakening to R13.6431/$ in intraday trade.Against the euro the rand was at R15.1226 from a previous close of R15.0949. Against the pound‚ the rand was at R20.7539 from R20.5669.The euro was at $1.1128 after losing ground from an intraday best of $1.1244.Investec economist Annabel Bishop said R13.69/$ was a key level for the local currency.South Africa had seen its terms of trade improve this year and its current account deficit reduce somewhat. "But this has not been enough to stem the fall in the rand alongside the other commodity currencies‚" she said. - BDlive..
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