CD South Africa: Rollercoaster rand runs wild

The rand recovered from its weakest level ever against the US dollar yesterday to close below 14/$. A lack of data and a strong opening on Wall Street were the main drivers of rand strength. Volatility remains high ahead of the week's data calendar, with the SA trade balance at 14:00 the highlight for today.

We're expecting a small deficit in the trade balance today, with a large negative posing the greatest risk to the rand. If you're needing to buy US dollars, you may want to take advantage of the small pull-back while it lasts.

Commentary by Gareth Frye