The rand broke through the psychologically important R18/$ level for the first time in just over three months on Thursday, boosted by positive US data, along with hopes that Chinese stimulus will offer support to commodity prices.
"The short-term move on the rand aligns predominantly with recent US inflation data rather than factors domestic," said IG SA senior market analyst Shaun Murison. A jump in key export commodity prices catalysed by the prospect of further Chinese stimulus and a softer dollar would have further benefitted the rand, he said.
Next week’s Reserve Bank meeting will now be the main focus locally, and an expected 25bps hike is most certainly still on the cards, said Butler."After the January policy misstep, I cannot see Mr Kganyago [giving] up his coveted insurance card next week.