Rand reaches intra-day high of R17.12 against greenback

The rand hits an intra-day high of R17.12 against the US dollar during South Africa’s trading day.

Currency specialist Andre Cilliers of Treasury One attributes this to continued positive sentiment generated by the Government of National Unity.

President Cyril Ramaphosa’s recent visits to New York and China, coupled with increased interest rate differentials between South Africa and the United States following the change in interest rates in the two countries are said to have benefited the Rand.

This has also been linked to the expectation that the US Fed is likely to continue on an aggressive path in cutting rates, which will tend to weaken the dollar and thereby strengthen emerging markets, like the South African rand.