The South African Rand has strengthened for the first time in three days, rising from its biggest one-day slump in six months as some metal prices increased and as investors gauged that the currency’s decline was overdone.
Yesterday’s decline saw the Rand tumble by 2.9%, its biggest decline since October 5th. The fall came after China released a disappointing GDP figure which weighed heavily upon the majority of the worlds commodity based economies. The sharp decline in Gold and silver prices also affected the Rand as South Africa is one of the world’s top exporters of the valuable metals.
Recovery came after Gold rebounded as some investors deemed the 14% decline over just two days to be excessive. The decline also saw the possibility that Asian Central banks may take the opportunity to add to their gold stockpiles. Other metals such as Silver, platinum and palladium all increased in value boosting commodity-producing nations such as South Africa, Australia and Canada. Metals account for up to 53% of South African exports.
Despite the Rands recovery this morning investors are warning that the currency is still at high risk to make negative movements. It could resume a downward slide as investors remain cautious of taking risks in the aftermath of yesterday’s weak Chinese economic data and following the suspected terrorist attack at the Boston marathon.
Further information on how the explosions happened will be the most likely driver for financial markets today.
Current ZAR Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0831
The South African Rand to US Dollar exchange rate is currently trading at 0.1085
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0709
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1049
The South African Rand to New Zealand Dollar exchange rate is currently trading at 0.1284
The South African Rand to Canadian Dollar exchange rate is currently trading at 0.1112
These exchange rates were correct as of 09:35 am GMT
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