Sat, 30 May 2020

The rand's rebound is gathering momentum

21 May 2020, 00:14 GMT+10

The rand's comeback seems to be gathering momentum.

The local currency advanced a third day on Wednesday to its strongest level in five weeks, breaching two key resistance levels that stood between it and further gains.

The dollar-rand cross busted below its 50-day moving average of 18.1507 for the first time this year. It also breached the 23.6% Fibonacci retracement from April's record-weak level at 18.044, which could set up a move to the 38.2% retracement line at 17.235.

The rand, Wednesday's best emerging-market performer, advanced as much as 2% to 17.9743 per dollar by 1:22 p.m. in Johannesburg. That pared the currency's decline this year to 22%, still the second-worst performance after Brazil's real.

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