Last week, the South African Reserve Bank's (SARB) rate cut, a soaring US dollar, and crypto market volatility tested markets. Despite these challenges, the resilient rand defied global pressures, opening at R18.14/$ and closing at R17.94/$, driven by positive risk sentiment and US consumer confidence hitting 112.9.
Last week, the SARB’s rate cut, a soaring dollar and crypto volatility tested markets, but the resilient rand defied global pressures.With the South African Reserve Bank delivering its second rate cut and the US dollar soaring to 13-month highs, the past week has been marked by significant market volatility. Inflation levels dropped to lows not seen in years, and the crypto markets added their usual unpredictability to the mix.
Mid-week trading began on the back foot, with the rand weakening to R18.10/$ as the market awaited South Africa’s inflation announcement. The annual inflation rate dropped to 2.8%, a significant decrease from the previous month and well below expectations. Despite this positive surprise, caution prevailed ahead of the SARB’s interest rate decision. As expected, the SARB cut rates by 25 basis points to 7.
The week’s events highlight the intricate interplay of global and local forces shaping the Rand’s movements, underscoring the challenges of navigating today’s volatile markets.Eskom has hailed its prepaid meter upgrade project a success and requested ‘zero buyers’ upgrade their meters before the deadline.
SARB Rate Cut US Dollar Crypto Volatility Rand Resilience Global Market Volatility
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