Emerging market currencies, such as the rand and Indonesia's rupiah, followed a month later on signs of a US economic recovery. The rand received an added boost after concern faded about the impact on South Africa of Zimbabwe's political and economic crisis.
"From about March, we've seen renewed investor interest in emerging markets," said Matthys Strauss, treasury economist at Absa Group Ltd. The March "election in Zimbabwe held us back, but once that was out of the way the rand could advance." For Harmony, the exchange rate gamble will probably net a profit of about R15 million in the second quarter, Swanepoel said. Harmony's profit doubled to R615 million in the three months through March, while rival Gold Fields's profit surged 64 percent to R1.049 billion.
The rand may extend its gains in coming months if the global economic recovery gathers pace, analysts said.
"It is the improvement in the global environment that holds the key," Gordon said. "As long as the global recovery remains on track, and no local or regional developments negatively impact sentiment, the local currency looks set to strengthen."
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