The rand extended its recent rally on Wednesday, strengthening to a fresh 20-month high against the US dollar.
At 11.53am, the rand traded at R17.21/$, 0.3% stronger than its previous close and its strongest level since early February 2023.
Analysts have partly attributed the rand’s current strength to positive sentiment in the wake of interest rate cuts by the South African Reserve Bank and US Federal Reserve.
“We are likely to continue to trade in a R17.20/R17.40 range for now,” said Andre Cilliers, currency strategist at TreasuryOne.
On Thursday, South Africa-focused investors will shift their focus to August producer inflation figures, which will shed further light on the extent to which price pressures are easing.
Slowing consumer inflation helped convince the Sarb to cut rates last week.
Earlier on Wednesday, central bank data showed a composite leading business cycle indicator rose 0.7% month on month in July. The indicator reflects vehicle sales, business confidence, money supply and other factors.
JSE rises
The JSE’s Top40 index was up 1.5% after touching a new high earlier in the session.
South Africa’s benchmark 2030 government bond was slightly weaker, with the yield up 1.5 basis points to 8.86%. — Bhargav Acharya, with Ankika Biswas, (c) 2024 Reuters
