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UK and US defend SA currency

Friday 26 June 1998 18:02 EDT
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THE BANK of England and the US Federal Reserve intervened in the foreign exchange markets yesterday to defend the South African rand, which had been weakened by strong speculation in the past weeks, according to traders.

The embattled currency spiked up in value as soon as rumours that the two central banks had been selling dollars and buying rands reached the markets, rising from a record low of 5.7875 rand to around 5.70 rand to the dollar.

However, it soon retreated to a new low of 5.81, hit by a fresh bout of selling.

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