ECONOMISTS SEE NO RESPITE FOR RAND.

Don't expect an improvement in the rand exchange rate soon, according to leading economists who expect it to trade at about R10,35 to the dollar during December, and to end next year at R11,15. By Monday late it was at R10,43, after hitting a worst-ever level R10,47 during the day. Absa economist John Loos predicted on Monday the rand would weaken to R10,75 by the middle of next year, then stabilise, losing value at a slower rate as the world economy improved. Absa's chief financial economist Matthys Strauss said news events did impact on the rand. On Thursday last week, comments by president Thabo Mbeki sent the counter reeling, and the currency continued its volatile behaviour on Monday. A liquidity crisis in Argentina affected South Africa, also an emerging market, and saw it lose ground again Monday. Strauss said Monday's record lows stemmed from "trading activity with importers coming into the market and therefore increasing the demand for dollars, while exporters stayed clear of the market, thinking the rand will depreciate even further, and they are keeping their dollars out of the market." Banks are not allowed to conduct forex deals without underlying transactions, but some foreign banks are not prepared to provide proof that their deals are underpinned by trade. Asked if government's efforts to rebuff forex speculators contributed to the rand's weakness, as many ...