The Rand, like the majority of commodity-driven/emerging market currencies, weakened against the US Dollar yesterday after several key pieces of US data smashed economists’ expectations and added weight to the argument that the Federal Reserve will begin to taper stimulus this year.
At the current exchange rate 1 US Dollar will purchase 10.0570 South African Rand as of 11:15 GMT
According to Absa Capital, the Rand came under selling pressure yesterday as a result of a moderately better-than-forecast leading indicator print and generally well-received bond auctions.
But the South African currency was pushed back above the psychological 10 Rand per US Dollar level after US new home sales, consumer confidence and durable goods orders data came in beyond predicted levels.
The Rand was holding fairly steady as local trade began, but strengthened after exporters exchanged overseas earnings for the local currency.
Against the Pound, the Rand climbed to 15.3401 (GBP/ZAR)
The Rand to US Dollar Exchange Rate Briefly Strengthened to 9.9890
As one Pretoria based expert observed: ‘There was some inflows from local companies translating their foreign exchange earnings’ and the Rand consequently advanced on the ‘Greenback’ by 0.8 per cent.
However, Absa Capital also asserted: ‘We continue to advocate buying the Dollar on dips ahead of Friday’s local trade balance release and would remain comfortable being tactically long US Dollar over the coming days and weeks.’
The South African trade balance figures are scheduled for release at 13:00 GMT on Friday.
Over the course of the last quarter the Rand has shed 8.3 per cent. The commodity-driven currency has now declined for five consecutive quarters.
Current South African (ZAR) Exchange Rates
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.0570 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.4644 <
The Euro/South African Rand Exchange Rate is currently in the region of: 13.1223 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.3598 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.7319 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5760 <
(Correct as of 11:15 am GMT)
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