The Rand to US Dollar (ZAR/USD) exchange rate advanced to its best-level since the start of the year as sentiment towards riskier assets continued to improve.
The Rand found support from a report released by the World Bank which said that growth in sub-Saharan Africa will accelerate to 5.2% in 2014, up from the 4.7% seen in 2013. Also adding support was the sale of South African bonds which carried on for a third consecutive day, the longest run seen in two weeks.
“It is emerging markets strengthening really, it is a continuation of the trend, we were struggling to get through 10.50 but we have come in this morning and broken it,” said Jim Bryson, a rand trader from Rand Merchant Bank. Most emerging markets and other high-risk currencies are like the Rand pushing at the stronger-end of the recent range,” Rand Merchant Bank.
The Rand was further supported by the release of the South Africa Chamber of Commerce and Industry’s business confidence index.
Confidence in Africa’s largest economy climbed from the 91.9 recorded in February to 92.7 in March. On a yearly basis the index was also higher marking the first time since June 2011 that the BCI is at a better level than the corresponding month of the previous year.
The US Dollar meanwhile was weaker against the majority of its most traded peers as last week’s weaker-than-forecast nonfarm payrolls report continued to dampen demand for the currency.
South African Rand (ZAR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,South African Rand,17.4661 ,
Euro,,South African Rand,14.3427 ,
US Dollar,,South African Rand,10.3958 ,
Australian Dollar,,South African Rand,9.7034 ,
[/table]
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