The South African currency continued to strengthen during the European session on Wednesday, dropping just below the R14/$ threshold according to NKC Research.
This is despite the South African Chamber of Commerce and Industry reporting that business sentiment slumped to the lowest level in seven months in March. However, the local unit was buoyed by a further easing in US-China trade tensions. Furthermore, traders continued to digest the March US CPI release and the ECB’s dovish remarks, which were supportive of risk sentiment. At close of local trade, the rand quoted 1.1 percent stronger at R13.92/$, after trading in range of R13.91/$ – R14.09/$. The rand traded little changed overnight. Expected range today R13.88/$ – R14.03/$.