The rand broke through the R14\/$ ceiling on Tuesday as the emerging market currency made its fourth straight day of gains against the dollar.<\/p>\n
\u201cThe last time we were below R14\/$ was on 8 September, but that for a very short time,\u201d said Umkhulu Consulting analyst Adam Phillips on Tuesday.<\/p>\n
\u201cI think the normal monthly forex offering from exporters, a tiny helping hand from offshore yield players (bonds also had a good day), selling of dollar at the end of the third quarter, and concerns as to what to expect from the Federal Reserve Bank meeting topped the list.\u201d<\/p>\n
By 09h30, the rand was at R13.91\/$, 0.35% up at R18.16\/\u00a3 and 0.34% up at R15.59\/\u20ac.<\/p>\n
\u201cThe rand is running hard, making its fourth straight day of gains against the dollar yesterday and its sixth straight day of relative outperformance,\u201d said RMB analyst John Cairns on Tuesday.<\/p>\n
\u201cAs we set out yesterday, you might question if the gains are justified but there is no reason to doubt, or try and fade, the trend.\u201d<\/p>\n
Phillips said South Africa\u2019s political situation might be calming down. \u201cI think it would be wrong to ignore what has gone on,\u201d he said.<\/p>\n
\u201c(Finance Minister Pravin) Gordhan has remained in the saddle in terms of the recent announcements on SAA and I think we have to assume he is going to be around to table the finance ministry’s medium-term budget in late October.<\/p>\n
\u201cHowever, it remains to be seen if he is around when the rating agencies make their decisions. I think that could be a good reason for the strength in the rand because exporters have been holding on, wondering what has changed.<\/p>\n
\u201cThey would be right in their thinking and all it took was for a few to sell and others were forced to. That is why I believe the recent moves are a short-term phenomenon.\u201d<\/p>\n
Fin24<\/a><\/p>\n South Africa can still avoid a downgrade to junk: Gordhan<\/strong><\/a><\/p>\n Get ready for R16, R17 or even R19 to the dollar this year: economists<\/a><\/strong><\/p>\nMore on the rand<\/h3>\n