Rand shoots to near four-month high against US dollar

The rand is showing positive signs of recovery since it plunged against major currencies in December.

Picture: Christa Eybers/EWN.

JOHANNESBURG - The rand has hit a four-month high against the dollar.

The rand has been trading at around R14,73 to the dollar, a remarkable improvement from December when it plunged against major currencies.

The decision by the president to fire Finance Minister Nhlanhla Nene sent the currency into a tailspin.

However, today's Constitutional Court ruling, comments by US Federal Reserve Chairperson, Janet Yellen over rates, and a narrower trade deficit, appear to have helped the rand.

Many analysts argue that the local currency is undervalued and hopefully it will gain more ground.