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.