The South African Rand is trading beyond the psychologically important R10 level against the US Dollar as economists raise their expectations that Fridays US jobs data will lend support to a tapering of the US Federal Reserve’s monetary easing programme.
As a result the Rand extended its run of losses to five days as the strengthening ‘Greenback’ weighed upon the majority of commodity and emerging market currencies.
“This move has been spurred by Dollar strength, rather than Rand weakness, although there is little domestically to offer traders any reason to go against Greenback strength,” said Christopher Shiells of Informa Global Markets.
In recent months the markets have been on edge every time a key piece of US economic data is released. This is because Federal Reserve Chairman Ben Bernanke has caused uncertainty among traders and economists after he failed to commit to an easing policy, instead investors are left guessing as to when the Central Bank may begin the process.
Traders however are saying that they believe the Rand may have been oversold and that it is likely to trade sideways until the release of the US jobs data on Friday afternoon.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.0252 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.1912 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.2512 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 8.9174 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8848 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.6590 >
(Correct as of 12:15 pm GMT)
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