Rand strengthens on offshore interest

Graphic: renjith krishnan

The rand strengthened in the late afternoon on Tuesday as the local currency sparked interest from foreign investors.

“The rand is rather range bound at the moment. It is still unclear as to why it is strengthening but it could be down to increased interest from offshore buyers interest in the local currency‚” said Lynden Reabow‚ an FX sales trader from PSG Prime.

At 3.22pm‚ the rand was bid at R8.7221 to the dollar from Monday’s close of R8.7941. It was bid at R11.3819 the euro from its previous close of R11.3879‚ and at R14.0566 against sterling from R14.1336 before.

The euro was bid at $1.3043 from Monday’s close of $1.2949.

“If we continue on this path we could see the 8.50 mark against the dollar‚” Reabow added. - I-Net Bridge