Rand strengthens against dollar
Jul 18, 2003
THE South African rand has made gains against the dollar, due to an improved economic outlook
By Andrew Kanyegirire
THE South African rand has made gains against the dollar, due to an improved economic outlook.
According to a recent Standard Bank market report, over the short term, the rand is expected to trade at a high of R7.75 to the dollar and a low of R7.50.
Over the past two weeks, the rand’s strength, has been triggered by the South African Reserve Bank’s 1.5% interest rate cut.
Following the rate cut, the previously volatile currency, held at R7.68.
According to the market report, the rand’s gains are being mainly attributed to a fall in inflation, more exports, controlled fiscal deficit and an improved performance in the economy.
Analysts also believe that positive statements about South Africa’s credit outlook by international credit rating agencies and the IMF have also helped to boost investor confidence.
A strong rand is expected to bring down the cost of imported goods, which will boost local consumption and manufacturing for export.
THE South African rand has made gains against the dollar, due to an improved economic outlook.
According to a recent Standard Bank market report, over the short term, the rand is expected to trade at a high of R7.75 to the dollar and a low of R7.50.
Over the past two weeks, the rand’s strength, has been triggered by the South African Reserve Bank’s 1.5% interest rate cut.
Following the rate cut, the previously volatile currency, held at R7.68.
According to the market report, the rand’s gains are being mainly attributed to a fall in inflation, more exports, controlled fiscal deficit and an improved performance in the economy.
Analysts also believe that positive statements about South Africa’s credit outlook by international credit rating agencies and the IMF have also helped to boost investor confidence.
A strong rand is expected to bring down the cost of imported goods, which will boost local consumption and manufacturing for export.