Over the next 12 months, however, the rand is expected to soften 3% to R13.85 per dollar, although that median forecast is 58 cents stronger than last month\u2019s poll, Reuters said.<\/p>\n
“There are still notable local risks aligned to subdued growth and fiscal challenges that warrant caution,” said Christopher Shiells, emerging markets analyst at Informa Global Markets.<\/p>\n
Shiells said that the national elections due in May also carry “popular policy moves and reform paralysis”.<\/p>\n
The rand was the fifth worst performing currency against the dollar in 2018 \u2013 13.8% weaker. However, the rand’s strong start to 2019 has been helped locally, by optimism around Ramaphosa\u2019s reforms.<\/p>\n
The most bullish forecaster in Reuter’s poll has the rand at R12.63 per dollar in a year while the most bearish suggested the currency could weaken to R15.50.<\/p>\n
The rand traded at the following levels against the major currencies on Wednesday:<\/p>\n
- \n
- Dollar\/Rand: R13.43\u00a0 (0.38%)<\/li>\n
- Pound\/Rand: R17.38\u00a0 (0.36%)<\/li>\n
- Euro\/Rand: R15.29\u00a0 (0.25%)<\/li>\n<\/ul>\n
Reuters said that South Africa\u2019s interest rates could be hiked by 25 basis points to 7% percent in May, after the Reserve Bank left them unchanged last month.<\/p>\n
The World Bank projects that South Africa\u2019s economy will grow to 1.3% in 2019, down from its June 2018 estimate of 1.8%.<\/p>\n
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