Rand recovery fades

JOHANNESBURG. – The rand’s recent recovery faded yesterday as volatile global markets took their toll. Global equity markets were again under renewed pressure after staging a impressive recovery in recent sessions. The fast-changing global market mood has led Barclays Research analysts to revise their projections for the rand in the third quarter 2015. They now expect the rand to weaken to 13,50 to the dollar from the previous forecast of 13,30.

“Heightened global risk aversion, a reduction in the rand’s carry appeal . . . (and) waning portfolios suggest that the rand remains vulnerable even in the short term.”

In one of the most volatile weeks, the domestic unit hit record lows of 14,01 to the dollar on Monday before bouncing back to 13,54 on Wednesday but it has now retreated to nearly 13,90. At 8.57am, the rand was at 13,8838 to the dollar from Wednesday’s close of 13,7978. Against the euro it was at 15,5739 from 15,4589 previously and was at 21,3120 against the pound from a previous close of 21,1964. The euro was at $1,1217 from a previous close of $1,1207. – BDLive.