File: The rand has remained below R14 to the US dollar in the second week of 2019.
JOHANNESBURG - Analysts don’t expect the rand to lose its volatility this year.
The local currency has been holding up well against the US dollar since the start of the year.
It's remained below R14 to the US dollar for the most part of the week.
But there are a number of global economic uncertainties that will bring volatility.
Analysts say as long as investors opt for safer investment destinations, emerging markets will continue to bear the brunt of negative sentiment.
FNB analyst Wayne McCurrie says the rand is within fair value at the moment.
"I think anything between R12,50 and R14 is fair value - so let's call it at the higher end of fair value."
But you must understand that fair value for the rand gets worst by about 6 % a year. The rand is a structurally weak currency .. Its movements are very volatile.... and it is just inside fair value in my view, said Wayne Mccurrie, FNB Wealth and Investments.