The South African rand fell today after the country posted the trade deficit in April, which caused the concerns that the nation’s economy will be more dependent on the foreign financial inflows.
During New York deals on Friday, the greenback decreases versus the South African rand. The U.S currency fall to 7.6125 against the rand at about 11:00 am ET, which may be compared to Thursday’s close of 7.7810. Thereafter, the exchange pair reversed its direction and currently trading at 7.6803.The dollar rose against its Canadian counterpart and South Africa’s rand after a report on U.S. trade indicated the global economic recovery may be slowing, reducing demand for the currencies of commodity- producing nations.
The rand climbed to its strongest level in more than two weeks after gold and platinum, South Africa’s biggest exports, gained and as exporters repatriated foreign earnings before the yearend.
The South African rand was one of the best performing currencies today in foreign-exchange markets as appeal for higher-yielding commodity exporter currencies was high, providing support for the rand to beat even an attractive dollar in today’s session.
The greenback declined versus the single european currency and higher-yielding currencies as stocks rallied worldwide on evidences that the economic recovery is improving around the world, risk appetite grows among traders that opted today specially by currencies like the South African rand, a high-yielding emerging market bet.
