Strong rand is part of global trend

As the rand continued to perform strongly against the US dollar on Monday, there were suggestions it...

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As the rand continued to perform strongly against the US dollar on Monday, there were suggestions it could dip lower than R6.50 to the greenback in the next 18 months.<?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office"?>

Economists agree that this is part of a far wider trend emerging abroad.

Strong measures to depreciate currencies are being implemented by major central banks.

Earlier, the local currency was trading at under R6.90 to the dollar.

ETM economist George Glynos said the rand’s strength was not solely related to events in <?xml:namespace prefix="st1" ns="urn:schemas-microsoft-com:office:smarttags"?><country-region w:st="on"><place w:st="on">South Africa</country-region>.

“It is in fact an emerging market play overall and emerging markets and any other high yielders or commodity currencies are benefitting greatly from those currency depreciative policies being implemented abroad,” he said.