The Rand has rebounded from a four-year low against the US dollar due to investors betting that the recent decline, the worst among the emerging market currencies, had gone too far.
The currency advanced by 0.2% against the Dollar in early morning trading reversing some of the 2.4% decline it suffered yesterday, the currency’s lowest level since April 15th 2009. The currency has suffered from investor concerns over the state of the nation’s economy. In particular the spate of labour unrest that has claimed several lives and threatened to cripple the country’s vital mining and farming industries.
“The move yesterday was perhaps a little dramatic and a touch overdone,” a Johannesburg-based analyst at ETM Analytics, said. “With the Rand such a massive under performer among emerging-market currencies, one feels there is perhaps scope for a recovery.”
The currency also received support when the mining company Anglo Platinum announced that it was planning to postpone job cuts after coming under pressure from the South African government. The South African minerals department said that the company would postpone a restructuring plan that could cost the jobs of up to 14,000 people.
“The Rand is a little bit stronger on the back of the Amplants announcement. As far as the way forward, a lot will depend on the bond market’s performance, which really is the main driver” a trader at Standard Bank said.
Rates correct as of 11:20am
The South African Rand to Pound exchange rate is currently trading at 0.07008
The South African Rand to Euro exchange rate is currently trading at 0.08206
The South African Rand to US Dollar exchange rate is currently trading at 0.1101
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1054
The US Dollar to South African Rand exchange rate is currently trading at 9.0793
The Pound to South African Rand exchange rate is currently trading at 14.2694
The Euro to South African Rand exchange rate is currently trading at 12.1862
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