Rand strengthens to 20-month high against US dollar
Investec chief economist, Annabel Bishop, said that the rand continues to benefit from the large US interest rate cut last week and South Africa's milder one in comparison by the reserve bank.
Picture: Eyewitness News
JOHANNESBURG - The rand has continued to strengthen, reaching a 20-month high peak against the US dollar.
The local currency on Wednesday traded at R17.13 to the dollar, its strongest since January last year.
Investec chief economist, Annabel Bishop, said that the rand continues to benefit from the large US interest rate cut last week and South Africa's milder one in comparison by the reserve bank.
Independent economic analyst, Dale McKinley, said that these cuts had created a more positive outlook.
"I think the secondary reason is obviously because of the GNU and the feeling amongst quite a lot of international business and markets that things are for them, at least, are heading in a positive direction or at least they like the kind of sounds coming out of the government in terms of policy, I think those two things combined is going to see this trend continue probably into the next year."