ZAR Forex Report
The High Court judgement to reverse a 2009 decision to have President Zuma’s corruption charges thrown out, further helped the ZAR appreciate.
The South African Rand advanced as much as 1.2% against the USD towards the end of last week as SA showed a surprise R2.9bn trade surplus compared to a deficit of R1.1bn in Feb.
The High Court judgement to reverse a 2009 decision to have President Zuma’s corruption charges thrown out, further helped the ZAR appreciate.
The ZAR has strengthened as much as 9% against the USD this year, trading at its lowest levels since Nov 24 last year. On Friday the 29th, the Rand was @ 14.115 against the greenback.
Poor US data and a weaker USD has helped Emerging Markets as investors looked elsewhere for returns.
Earlier last week, the Rand gained as a Deutsche Bank Report stated the Rand is the most undervalued currency in the world; capital inflows into SA resumed, but not as aggressively as a few weeks ago. On the local front Lungisa Fuzile, the National Treasury Director, had his contract extended for another 2 years – news that will resonate positively with foreign investors, but potentially not the best timing for an announcement as the local market was in long weekend mode.
The market responded positively to the High Court decision that President Zuma will now potentially face 783 cases of corruption charges; we can again look to our neighbours across the Atlantic, Brazil, where the market bounced positively when their president found herself in a similar situation a few weeks ago.
On Tuesday, the Rand somewhat reversed its gains, dropping over 1% against the USD on the back of weak Chinese manufacturing data, as investors opt for less risky currencies.
We can expect a fairly quiet four-day week, but look out for the ECB’s Economic Bulletin on Thursday and especially the US non-farm payroll figures on Friday, which could give the market some direction.
ZAR FOREX RATES
USDZAR = 14.4474
GBPZAR = 21.1864
EURZAR = 16.7312
AUDZAR = 10.9385
NZDZAR = 10.1055
CADZAR = 11.5002
CHFZAR = 15.2438
Do you want to receive news alerts via WhatsApp? Send us a WhatsApp message with your name and surname to 061 718 4438.
Please read our WhatsApp broadcast list disclaimer.
Join us on BBM at 59015786
Join the conversation on Facebook, Twitter and Instagram.
Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news.
Mobile users can join our WhatsApp Broadcast Service here, or if you’re on desktop, scan the QR code below.
