The South African Rand rallied against the Pound and US Dollar on Friday to edge away from a five-year low.
The Rand found support from a surge in the price of Gold and Platinum, two precious metals that are the major commodity’s mined and exported in South Africa. The price of gold has risen to reach its best rate in over two weeks and Platinum saw a rise. South Africa is home of the world’s largest Platinum mine.
“The stronger gold price boosted the rand a bit today,” Ion de Vleeschauwer, chief currency dealer at Bidvest Bank Ltd., said by phone from Johannesburg. “The price is up significantly and mining companies are selling their stock to profit on the weaker currency.”
The Rand joined other commodity based currencies as they pushed higher against their peers. The Australian, New Zealand and Canadian Dollars have all made significant gains due to rise in the value of commodities such as iron and oil.
The rally in commodity prices saw investors widely ignore the release of positive data in the UK and Eurozone. Due to the market being relatively quiet as the holiday season comes to an end, trading tends to have a greater impact on the market due to the lack of liquidity.
So far today the Rand is the biggest gainer among the world’s major emerging market currencies. The gains are likely to be short-lived however as next week will see the markets return to normal as traders and investors return from their holidays.
Current South African (ZAR) Exchange Rates
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.6332
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 17.4380
The Euro/South African Rand Exchange Rate is currently in the region of: 14.4742
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.5592
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.8240
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 10.0046
(Correct as of 14:30 pm GMT)
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