Rand back above 6/US$

JOHANNESBURG – South Africa’s rand weakened back above the key 6/dollar level as the greenback strengthened and gold prices dipped, but traders said its long term rally was still intact.

At 1125 GMT the rand was trading at 6,01/dollar, about six cents weaker than its level in Johannesburg late on Tuesday and further off a 5-1/2 year peak of 5,87/dollar scaled on Monday. Traders said the unit was responding mainly to a recovery in the dollar after Federal Reserve Chairman Alan Greenspan said US economic expansion had become “more broad-based”, reinforcing expectations interest rates would rise this year.In response the dollar rose to a one-week high of 1,2279 against the euro, the currency of South Africa’s main trade partner which the rand often closely tracks.It was still trading near that level at 1120 GMT on yesterday.The most traded emerging market currency after the Singapore dollar, the rand has rallied by about 12 per cent against the dollar so far this year, making it the world’s star performer.-Nampa-ReutersTraders said the unit was responding mainly to a recovery in the dollar after Federal Reserve Chairman Alan Greenspan said US economic expansion had become “more broad-based”, reinforcing expectations interest rates would rise this year.In response the dollar rose to a one-week high of 1,2279 against the euro, the currency of South Africa’s main trade partner which the rand often closely tracks.It was still trading near that level at 1120 GMT on yesterday.The most traded emerging market currency after the Singapore dollar, the rand has rallied by about 12 per cent against the dollar so far this year, making it the world’s star performer.-Nampa-Reuters