The Rand has advanced for a fourth consecutive day as it continues to profit from the decrease in risk aversion brought about by the bailout of Cyprus. Despite the bailout having ominous repercussions for the rest of the Eurozone demand for riskier assets improved.
Cyprus’s bailout plan to tax bank depositors had cast doubt on the safety of financial assets in Europe, sending U.S. stocks lower and the euro to a four-month low yesterday. Concern hasn’t spread to other debt-stressed nations in the euro region, according to John Cairns, a currency strategist at Rand Merchant Bank in Johannesburg.
“Any further fallout should be limited,” Cairns said in e-mailed comments. “This then leaves markets jittery and uncertain but edging towards recovery.”
The Rand has also been supported by the climb of the Standard and Poor’s GSCI index of raw materials. The index rose for a third day in a row as the prices of metals such as copper gained. Metals and commodities make up 53% of South Africa’s exports.
It was also supported by an expected slight improvement of the nation’s trade deficit. Economists are expecting that the latest data will show that the deficit narrowed from the record high 24.5 billion Rand recorded in January to 12.7 billion Rand in February. The actual data is released on the 28th of March.
Current ZAR Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0839
The South African Rand to US Dollar exchange rate is currently trading at 0.1079
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0711
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1030
The South African Rand to New Zealand Dollar exchange rate is currently trading at 0.1293
The South African Rand to Canadian Dollar exchange rate is currently trading at 0.1102
These exchange rates were correct as of 10:10 am GMT
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