Free Trial

Rand Extends Rally, Outperforms All Other Majors

ZAR

The South African Rand has taken the lead among all 31 major currencies tracked by Bloomberg, with above-forecast local CPI figures published today supporting the case for continued monetary policy tightening by the SARB. Spot USD/ZAR last deals at ZAR18.3477, down ~2,110 pips on the session. EUR/ZAR trades at ZAR19.7760, ~2,020 pips lower on the day, moving away from a cyclical high printed yesterday at ZAR20.0628.

  • Local-currency bonds have trimmed their initial losses and operate within touching distance from unchanged levels, with local markets open again after a public holiday. South Africa's 10-year breakeven inflation rate has slipped but yesterday's multi-week lows remain intact.
  • The stabilisation in precious metals, with a relevant BBG index sitting ~0.5% higher on the day, might be lending some support to the ZAR. Spot gold operates ~$5.2/oz. above neutral levels.
  • The FTSE/JSE Africa All Share Index has added ~1.2% so far, building on last Friday's gains and gradually approaching its 100-DMA.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.