THE RAND hit a two-and-a half-year high against the dollar yesterday and was seen testing the key R7 level in the next few sessions on renewed interest in the currencies of commodity exporting economies.
The rand had closed firmer than R7.15 on Monday for the first time since January 2008 and analysts said it would confirm a bullish trend if it could close at similar levels repeatedly this week.
"Since the technical break of R7.17 last week, coupled with good global sentiment and risk appetite, we have seen inflows into the rand and other commodity currencies," said a Johannesburg-based dealer.
By 5pm yesterday, the rand was bid at R7.0789 to the dollar, 5.87c stronger than Monday's bid. The rand hit a high of R7.0571, within a range of R7.05, which would pave the way towards the psychologically important R7 dollar level.
Analysts said market players shrugged off comments from Cosatu calling for a weaker currency.
The rand's recent surge has been a major topic for unions and politicians.
A senior ANC official said yesterday the (ruling) party would look at several options to deal with the currency when it held its policy meeting next week.
Source -Busrep.co.za
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