The rand was mixed against major global currencies on Monday afternoon‚ losing ground against the euro and pound‚ while remaining slightly firmer to the dollar.
The rand has strengthened significantly since Friday‚ when ratings agency Moody’s kept SA’s debt rating at investment grade‚ further upgrading the domestic outlook to stable from negative.
TreasuryOne analysts said the rand could hit R11.51/$ over the short term‚ but a lot would depend on international developments.
Globally‚ focus is on continued threats of escalating protectionism‚ although some indication that the Trump administration would be more moderate than initially feared was providing a relief rally on Monday. There were also indications that China would seek further talks on trade issues.
“It’s too early to say if the risk aversion flows have peaked and the risk rally will continue‚ but given the measured responses from China on trade‚ it appears that both parties wish to resolve the issue behind closed doors without escalating the conflict into full-blown trade war‚” said BK Asset Management MD Boris Schlossberg.
At 3pm the rand was at R11.6710 to the dollar from R11.6818‚ at R14.4733 to the euro from R14.4277 and at R16.5697 to the pound from R16.5226.
The euro was at $1.2401 from $1.2351.