With economists forecasting that South Africa’s trade deficit narrowed in March bond yields fell to a record low and the Rand advanced.
At the current exchange rate 1 US Dollar will purchase 8.9526 South African Rand as of 14:00 GMT
The commodity-driven Rand climbed 1.2 per cent against its US counterpart yesterday as South African bonds and stocks were supported by the expectation that global central banks will maintain or expand fiscal stimulus in order to boost growth.
The Rand’s movement caused one industry expert to remark: ‘Against a bullish global backdrop, the Rand market’s attention will shift to the release of South Africa’s trade balance. If our expectations are correct and the number positively surprises the market, the release will provide further support to the local unit.’
Prior to the publication of South Africa’s trade balance figures the Rand was trading in the region of 8.9828 against the US Dollar.
In the hours ahead the Rand may continue strengthening against the ‘Greenback’, as data released by the South African Revenue Service actually showed that the nation’s deficit narrowed by more than expected, to 7.77 billion Rand.
The 1.75 billion Rand improvement was largely the result of a pickup in base metal and mineral exports.
Investors will now be focusing on the upcoming influential central bank decisions. The Federal Open Market Committee is gathering tomorrow for its two-day policy meeting and the European Central Bank is issuing its rate decision on Thursday.
However, US consumer confidence figures, scheduled for release today at 15:00 GMT could inspire additional market volatility.
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: 0.1109 <
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: 0.0722 >
The South African Rand/Australian Dollar Exchange Rate is currently in the region of: 0.1080 >
The US Dollar/South African Rand Exchange Rate is currently in the region of: 8.9526 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 13.9512 >
The Euro/South African Rand Exchange Rate is currently in the region of: 11.7789 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.2851 >
The Canadian Dollar/South African Rand Exchange Rate is currently in the region of: 8.8714 >
(Correct as if 14:00 GMT)
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