Rand Breaks Through Barrier as Currency Rallies for Sixth Dayby
South Africa’s rand rallied through a psychological barrier, outpacing all of its emerging peers.
The currency gained as much as 0.9 percent to 12.9896 per dollar, dipping below 13 for the first time since August 2015. The rand, which has the third-best carry return in 2017 among developing markets, extended its rally to a sixth day, the longest winning streak since September, as inflation in Africa’s most-developed nation slowed in January for the first time in five months.
“Our expectation remains for slow and unsteady rand gains,” John Cairns, an analyst at Rand Merchant Bank in Johannesburg, said in a note to clients. “Our proverbial bull will make his way up the stairs. The bias for today remains for rand gains.”
The rand strengthened 0.4 percent to 13.0538 per dollar as of 11:29 a.m. in Johannesburg.