Rand continues to strengthen against the dollar

The rand has once again firmed against the US dollar reaching two-and-a-half year lows against the...

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The rand has once again firmed against the US dollar reaching two-and-a-half year lows against the greenback on Monday.

It dipped below R6.90 to the <?xml:namespace prefix="st1" ns="urn:schemas-microsoft-com:office:smarttags"?><country-region w:st="on"><place w:st="on">US</country-region> currency on Monday morning. But experts suggest that the dollar’s weakness, and not the rand’s strength, is behind the movement.

“We believe that it is part and parcel of a far bigger trend that is emerging, not so much in <country-region w:st="on"><place w:st="on">South Africa,</country-region> but in fact abroad, where some very strong currency depreciative policies are being implemented by the major central banks,” said ETM Economist George Glynos.