The Rand – 4th Quarter December 2020

The rand continued to strengthen over the quarter as an increase in risk capital on the back of an uptick in investor sentiment was experienced. This rand gain (or dollar weakness?) can be seen by the sharp downturn in the blue line (exchange rate) bringing it close to its long-term trend as indicated by the orange line. Given the uncertain economic environment that South Africa finds itself in, it is likely that the currency exchange rate will remain volatile.