JOHANNESBURG - The rand is recovering after an initial negative reaction to the US hiking interest rates for the first time in three years.
The rand weakened significantly after the announcement by the US Federal Reserve last night, and it closed at R16.40.
But it has since strengthened to trade below R16.25.
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Higher rates in the United States make dollar investments more attractive, and that makes rand investments relatively less attractive.
The rand has been resilient despite the war in general.
It was trading below R16 to the dollar earlier this month - exactly where it was before the war began.