The rand is forecast to rally to its strongest this month if market optimism continues, after it reached a six-week high of R14.44 to the dollar on Thursday lifted by growing bets that lending rates in the US would remain low.
The local currency shook off the sluggish manufacturing and business confidence data. Manufacturing output in South Africa fell more than expected in February, declining by 2.1 percent while business confidence plunged to a four-month low, from 94.3 in February to 94 in March. However, analysts said this week that the rand had the potential to extend gains and push to the R14.40 to the dollar mark supported by progress on the vaccine front and optimism over global economic growth.
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