Rand strengthens slightly, continues to trade at 5-month low

Rand Merchant Bank’s Jan Sluis-Cremer says expectation of higher interest rates in the US fuelled the dollar strength.

FILE: Picture: EWN.

JOHANNESBURG - The rand has strengthened slightly but continues to trade at near five-month low.

The local currency lost about 2% of its value at R12.66 due to a strong US dollar.

Rand Merchant Bank’s Jan Sluis-Cremer says expectation of higher interest rates in the US fuelled the dollar strength.

“The weakness coming more from the dollar strength. The dollar rallied strongly in the last 48 hours, and we’ve seen that filter across commodities and into the emerging market space, with the rand being one of the hardest hit.”