Economists hope rand continues to strengthen

Economists say the rand was among the best performing emerging market currencies last week.

South African money. Picture: Facebook.

JOHANNESBURG - Economists are hoping the rand will continue to strengthen for a fifth week against the dollar and pound.

The local currency won major ground against the pound last week as the United Kingdom (UK) continued to feel the effects of Britain's exit from the European Union (EU).

At 7.30am, the rand is trading at 17.39 to the pound.

Economists say the rand was among the best performing emerging market currencies last week, along with the Mexican and Colombian pesos.

There is general consensus that the decision by the UK to leave the EU has had a profound effect on the rand.

The Brexit decision has also had a ripple effect on the global economy with expectations that the US Federal Reserve will delay raising interest rates.

Earlier this year, Reserve Bank Governor Lesetja Kganyago expressed concern at the volatile rand saying the bank would take this into account when deciding on the repo rate.

However, the rand has since strengthened which will now be taken into account when the bank takes its next decision.