South African Rand in Free Fall 30 May 2013

South African Rand Breaks Above Key Resistance Level

The Rand has plummeted to over R15.00 against the Pound Sterling and is currently testing the important resistance level of R10.00 against the US Dollar.

For the past two weeks, foreigners have sold off in excess of R11 billion worth of South African bonds and the rand has weakened on the back of these currency flows despite growing concerns that the sell off might be overdone.

The Head Dealer at PSG FX in London said that important resistance and psychological levels of R10 and R15 to Dollar and Sterling were breached and the resulting execution of stop loss trades from foreign investor meant that the currency was sold without hesitation.