Share

Rand breaches R15/$ in volatile trade

The rand remained volatile on Friday morning, first strengthening by 0.75% before weakening by 1.7% to briefly trade under R15/$.  

The local currency, which has been experiencing large swings in recent days on the back of broad emerging market weakness and local economic concerns, opened at R14.73/$ and strengthened to R14.62/$ before falling back to change hands at R14.80/$ at 10:54.

In then quickly lost 20c to the dollar to fall under R15/$ before pulling back to trade at R14.94 at 11:29.

TreasuryOne said in a snap note that the rand's fall was caused by a 'blowout' in SA's fellow emerging market currency the Turkish lira, which fell over 5% on Friday morning against the dollar. 

Andre Botha, senior currency Dealer at TreasuryONE, earlier said in a morning note that the rand was still taking its cue from emerging market sentiment. 

"The movement in the rand only showcases the current risk-averse nature in the market regarding EMs. At the slightest hint of discord, we have seen massive sell-offs in the emerging markets."

While Botha said the rand was "massively undervalued" – and should in time start to strengthen – "the theme until we reach some sort of sanity in the market will be volatility".

"A run to R15.00 cannot be ignored in the short term."

Adam Phillips, treasury specialist at Umkhulu Consulting, said in a morning update that the rand exchange rate would next week likely be as volatile as this week. 

*Update: This article was updated at 11:31 and at 12.34 with the latest rand/dollar exchange rates and snap comment from market analysts. 

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
+0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.40
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders