Rand strengthens slightly against US dollar in early JSE trade

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The rand has strengthened nearly 1% in early JSE trade to R18.93 to the US dollar. This after having traded as weak as R19.90 to the dollar at the end of May, which was an all-time low.

This can in part be contributed to a weaker dollar and an easing in Eskom’s load shedding.

However, the stronger rand is also due to profit-taking, as it has become oversold and is experiencing a correction to stronger levels.

The fact that South Africa’s economy has avoided a recession for now after a GDP of 0.4% in the first quarter is underpinning the rand, adding to its strength in early trade today.