The Rand has been hitting the headlines for all the wrong reasons of late, and we did see the Rand touch a new all-time level, with the Rand touching R19.50 at its height today. The Rand did have some reprieve and is currently trading at R19.3000 against the US dollar. With headlines currently in focus, it only takes a negative headline to see the Rand break higher again, and the world now has its magnifying glass on the Rand due to the allegations of supplying munitions to Russia. All the indications show that the Rand is massively oversold, but that has gone out the window in the short term until the dust has settled on the current issues facing the Rand.
It will be interesting to see the course of action that the SARB and Government will take to calm markets and give some confidence back to the Rand and the local market. We have seen at the back end of the day that the US dollar is running stronger, which has caused the Rand to trade back above R19.3000. The EURUSD is currently trading below 1.0900 at 1.0872. The Rand will struggle to break lower should the US dollar continue strengthening.
