Hopes for rand to regain ground against pound
The pound has come under huge pressure following concerns that Britain may exit the EU.
JOHANNESBURG - Economists are hoping the rand will regain more ground against the pound, which is under pressure over concerns that Britain may exit the European Union (EU).
The British currency hit an almost seven year low against the dollar yesterday, with the rand trading at around R21.40 to the pound at one stage.
It's currently at R21.44 to the pound.
The pound has come under huge pressure following concerns that Britain may exit the EU in what is being called the Brexit.
At one stage yesterday, the pound was down 2.4 percent against the dollar. This came after London Mayor Boris Johnson joined the campaign to leave the EU.
A referendum will be held in June and analysts say the pound could come under more pressure.
Johnson, one of the country's most popular politicians, gave the Brexit camp a much-needed figurehead when he announced his support on Sunday, just days after David Cameron struck his deal in Brussels to hand Britain what he called a "special status".
Cameron called on politicians to campaign on what is best for Britain, in a veiled jab at Johnson, whose stance may be designed to attract widespread Eurosceptic support among Conservatives in a bid to succeed Cameron, who has said he will step down before the next election in 2020.
The rand has regained ground against the pound and dollar recently after plummeting last December.
It's hoped that Finance Minister Pravin Gordhan's budget speech tomorrow will also provide more confidence and help the rand become stronger.