13 April 2017
Commentary by Niel Lubbe
The rand gained over 2.7% yesterday after President Trump surprised markets with his latest flippy-floppy comments. The local unit smashed through the 13.70/$ support level and opens at 13.42/$ (strongest level this month). Trump stated that he prefers low interest rates and that the dollar has strengthened too quickly. The rand has now regained roughly 1/3rd of its losses after the Gordhan debacle, which indicates how fundamentally strong the currency is currently. It’s a quiet day on the data front, with only US PPI (Producer Price Index) figures out later. Happy Easter folks, safe travels!