The Reserve Bank of Australia’s decision to slash its benchmark rate to a record low of 2.75 per cent from 3 per cent triggered currency movement across the market. While the ‘Aussie’ and ‘Kiwi’ fell against the US Dollar, the commodity-driven Rand also softened.
At the current exchange rate 1 US Dollar will purchase 9.0219 South African Rand as of 11:00 am GMT
The Rand gained against the US Dollar at the close of last week, boosted by better-than-forecast US employment data, but the advance wasn’t to last.
According to RMB bank, ‘The weakness extended across the major crosses. Having failed to break through the 8.90 Rand per Dollar level, it seems the local unit will be stuck in a range around the 9.00 Rand per Dollar level for now – especially if you consider that there is very little global and local data releases scheduled for today which can provide the market with direction. That said, global monetary policy has turned somewhat more supportive with the Reserve Australia’s interest rate cut this morning.’
The RBA is now the fourth major central bank to issue a rate cut, and the pressure on South Africa’s Reserve Bank to do the same is increasing.
The Rand’s declines were also the result of falling gold prices.
Important pieces of South African economic news to watch out for in the days ahead include tomorrow’s foreign exchange reserves figures and Thursday’s Industrial Production data.
Current South African Rand (ZAR) Exchange Rates
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The South African Rand/US Dollar Exchange Rate is currently in the region of: 0.1107 <
The South African Rand/Euro Exchange Rate is currently in the region of: 0.0847 <
The South African Rand/Pound Sterling Exchange Rate is currently in the region of: 0.0714 <
The South African Rand/Australian Dollar Exchange Rate is currently in the region of: 0.1089 <
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.0219 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.0352 >
The Euro/South African Rand Exchange Rate is currently in the region of: 11.8205 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.2086 >
The Canadian Dollar/South African Rand Exchange Rate is currently in the region of: 8.9365 >
(Correct as of 11:00 am GMT)
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