Hear me roar (8.7.04)

The rand roared ahead against major currencies yesterday afternoon on the back of higher commodity prices and a rally by commodity currencies.

According to RMB AM and Business Day market analysts said that as long as commodity prices remained at current levels, the outlook for the rand was positive.

In late afternoon, the rand was quoted at R6,1378 to the dollar from an overnight close of R6,2876. It was quoted at R7,5830 to the euro from Tuesday's close of R7,6362 and at R11,3780 against sterling from a previous close of R11,5780.

A market analyst said that the rand's strength was a commodity currency play - the Australian and Canadian dollars had rallied as well and the rand had strengthened in line with them.

In New York, the dollar tumbled to a three-month low against the euro yesterday on the market's firming view that the Federal Reserve could take its time raising US interest rates.

The dollar's decline was an extension of the sell-off sparked by Friday's weaker-than-expected US payrolls data and Tuesday's report showing a slower pace of expansion in the US Service sector.