Is the rand on the brink of breaching R17?

Having dropped as low as R16.90 in early morning trade, the rand had recovered somewhat by mid-morning but was still substantially lower than before the war in the Middle East.

Trading Economics noted that the currency had hit its lowest level since 7 April against the dollar as traders sought refuge in the greenback amid ongoing Middle East uncertainty and rising oil prices.

“The rand has taken the brunt of the sell-off in riskier assets, falling to R16.90 in the Far East this morning,” said TreasuryONE currency strategist Andre Cilliers. By mid-morning, the currency was just above R16.80.

By Nicola Mawson

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