The South African rand increased significantly the past week. This was due to a weaker USD and a robust gold price.
increased significantly against both the USD and the British Pound . The currency was mostly driven by a weaker USD and a robust gold price. Local data was muted and nothing significant happened on the local front. Meaning that the rand movement was influenced by international affairs.Additionally, the USD weakened for most of the previous week. The main driver of the USD has been speculation on their potential rate cut, scheduled for June.
However, the US economy still appears to be strong, which has luckily not reflected in inflation yet. Going forward the Federal Reserve will keep a close eye on labour data and spending. On the other side of the Atlantic, the GBP has also been losing ground due to the same dynamics. Markets expect the Bank of England to cut rates a bit later this year as opposed to the US. However, inflation still appears to be high in the UK and may dampen the number of cuts to be expected.
The commodities have been another major driver for ZAR. Gold has broken all-time highs of $2,300 per ounce and has continued to rise. There are multiple factors driving the gold price. The most prominent of which is the “safe haven” narrative. Gold has become a more attractive asset due to the weakening of major currencies such as the USD and GBP. The uncertainty in the geopolitical landscape also continues to act as demand side tailwinds.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South African Motorists Paying More for Fuel Due to Geopolitical Risks and Weak RandSouth African motorists are facing higher fuel prices in March 2024 compared to the beginning of the year. The increase can be attributed to factors such as geopolitical risks, attacks on oil cargo ships, and the weakened rand. The impact of Houthi attacks on fuel cargo ships and the weakened buying power of the rand have contributed to the price hikes. The Brent Crude oil price has also risen due to the geopolitical risks and attacks on oil cargo ships in the Red Sea stretch.
Read more »
Packaging Equipment Field Technician - Gauteng East RandIT Industry News. Daily.
Read more »
Rand-friendly destinations in EuropeThere are many Rand-friendly European destinations where South Africans can enjoy a holiday without worrying too much about their budget.
Read more »
East Rand Nomads have fun while helping NPOsBreaking local news in Boksburg
Read more »
Judge removed from billion-rand SAP case after 'taking a break' while witness testifiesJudge removed from billion-rand SAP case after 'taking a break' while witness testifies
Read more »
THE SOUTH AFRICAN NATIONAL DEFENCE FORCE TO TAKE REVELLERS BY STORM AT THE 2024 RAND SHOWSouth Africa Today, News source, provides breaking news on South Africa, world, Africa, sport, travel and more.
Read more »