The South African Rand strengthened to its highest level in a week against the US Dollar after it was supported by a rise in the price of precious metals and other commodities.
The currency touched its highest level since April 15th as Gold rose to its highest level in more than a week on Thursday and as International Monetary Fund data showed that Turkey and Russia increased their reserves of gold in March which helped raise the spot price for bullion from the two-year low it slumped to last week.
Stronger precious metal prices should boost commodity-linked currencies like the rand, analysts said.
“Our correlation analysis confirms that the rand has been tracking commodity prices more closely of late, which implies that if there is a further improvement in precious metal prices, the rand may strengthen a bit further,” Absa Capital analysts wrote in a note.
Gold mining is one of South Africa’s major industries and due to the continuing rise in the value of the precious metal the Rand could strengthen further. The gold mining‚ resources and platinum indices were up 3.48%‚ 0.52% and 0.48% respectively. The gold price continued on its path of recovery adding 0.95% to $1 444.03/oz by 9:54. At the same time the platinum spot price was 0.94% higher at $1 439.50.
Current ZAR Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0843
The South African Rand to US Dollar exchange rate is currently trading at 0.1101
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0713
The US Dollar to South African Rand exchange rate is currently trading at 9.0803
The Pound Sterling to South African Rand exchange rate is currently trading at 14.0187
These exchange rates were correct as of 11:25 am GMT
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