Can the Rand Recover?
Experience has taught us that the direction of the rand, how far, or when it will fall or rise against hard currencies such as the USD is notoriously difficult to predict. The last time the rand’s tumble was this dramatic was in 2001 when it collapsed from R7.60 to the USD to R13.84. Recently the rand’s fall has been more dramatic. There are differing views as to where the rand will go to from here. One is that we are in a period of sustained weakness for a while. Reasoning for this view is as follows: