The Rand broke through support levels at the start of last week, strengthening to 12.885 vs. the USD as the Dollar sank after President Trump’s health care bill failed to drum up enough support.
The USD weakened to its worst levels since May 2016 against the Euro, as it broke through 1.15.
The rand was slightly stronger against the GBP and Euro due to the delaying of the proposed mining charter.
On Wednesday afternoon, the ZAR closed at 12.91 against the USD and at 14.86 and 16.82 against EUR and GBP respectively as the inflation figures came in at 5.1% for the month of June – on target and what the market expected.
Politics and threats aside, SARB managed to keep its focus on policy, cutting the interest rate by 25 basis points to 6.75% per year. The rate came as a slight surprise, although it was hoped for and the Rand weakened through the resistance level of 13 to close Thursday afternoon at 13.02 vs. the USD. The decision was not unanimous and it was the first cut in five years, however, growth expectations remain bleak for The Republic.
As the ECB kept interest rates unchanged last week, the shift in focus was to the other side of the pond where the US Fed is also expected to keep interest rates unchanged later this week. The Rand is back around 13s, opening the week at 12.90 against the Dollar. The unchanged Euro (and possibly US) rate can be seen as a Rand positive in that investors will still receive a much better return in SA.
On Tuesday we saw SA’s second quarter unemployment rate released – the previous figure came in at 27.7% and you would be surprised to see an improvement on this figure. This week we also see global PMI figures released as well as UK and USD GDP. Locally, we also have the budget balance later in the week.
ZAR FOREX RATE
USDZAR = 13.0348
GBPZAR = 16.9642
EURZAR = 15.1861
AUDZAR = 10.3342
NZDZAR = 9.68137
CADZAR = 10.4154
CHFZAR = 13.7512
>> Expect to find the latest trends in Health, Wellness and Beauty in Ballito.
>> Meet the top players in the North Coast property industry. See our Property People feature.
Do you want to receive news alerts via WhatsApp? Send us a WhatsApp message (not an sms) 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.
