Another tough week for the Ran

Another tough week for the Rand

Last week was yet another tough one for the Rand as it continued its fight for survival against the Pound and the Dollar.

Another tough week for the Ran

Last Friday marked the 11-day low for the Rand against the Dollar as it traded at USD-ZAR: 13.7460. Under the pressure of weak domestic growth and in anticipation of US rate hikes, the Rand has given up more than 18% of its value against the greenback this year.

Over the weekend, Central Bank Governor Lesetja Kganyago stated that to an extent, the Rand depreciation is partly due to global foreign exchange rebalancing. The Rand is likely to remain vulnerable and things don’t look ready to turn around just yet. On Friday, the Rand weakened to an alarming level of GBP/ZAR: 21.3309.

What to look out for this week? Tomorrow, the Eurozone’s Gross Domestic Product will be released. This could have an effect on the movement of the Rand. Later this week, the Bank of England will be releasing data which will affect the movement of the Pound. The Rand will continue to keep up the fight this week, but with a currency so volatile, it is hard to predict which way it will move.

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