Rand may test sustained break above R15/$ - analysts

The rand started the new week just below the R15.00/$ mark, following a "dreadful day" for the local currency on Friday.

Bianca Botes of Peregrine Treasury Solutions, in a morning note, said the rand may test a sustained break above the R15:00/$ level this week. 

By 08:40 the local unit had strengthened slightly to trade at R14.96/$.

As Sanisha Packirisamy, an economist at Momentum Investments, noted on Monday morning, a dent in global risk appetite caused by the coronavirus left the rand the worst performing currency against the dollar in January. The local currency weakened by 6.7% against the greenback in the first month of the year, by 5.8% against the euro and by 6.3% against the pound. 

"Virus fears have rattled markets, sending flows in the direction of safe haven assets, leaving riskier assets on the back foot," she said.