Anglo cash deal pushes rand to a 3-month high

JOHANNESBURG – The rand hit its best level in almost three months against the dollar on Monday after it was fired up by an influx of cash related to a big corporate deal.

Anglo American said it had sold its 20 per cent stake in Gold Fields to Russia’s Norilsk Nickel for R7,6 billion. Anglo American said it would book a gain on the sale of about US$480 million (N$3 billion) and use the sale proceeds to pay down South African debt and to finance capital expenditure in South Africa – meaning the cash will flow into the local economy.At 5pm the local unit was bid at R6,3876 to the dollar, a gain of more than 16c on late Friday’s level.Monday’s late figure was its strongest since early January.”I think it’s [the rand gains] all related to the Anglo deal,” said Econometrix analyst George Glynos, a view echoed by dealers.”The next big technical target is R6,30 to the dollar,” he said.- Nampa-Reuters-BloombergAnglo American said it would book a gain on the sale of about US$480 million (N$3 billion) and use the sale proceeds to pay down South African debt and to finance capital expenditure in South Africa – meaning the cash will flow into the local economy.At 5pm the local unit was bid at R6,3876 to the dollar, a gain of more than 16c on late Friday’s level.Monday’s late figure was its strongest since early January.”I think it’s [the rand gains] all related to the Anglo deal,” said Econometrix analyst George Glynos, a view echoed by dealers.”The next big technical target is R6,30 to the dollar,” he said.- Nampa-Reuters-Bloomberg