The USD-ZAR opened at 13.63 this morning; this is suspected to be the result of the mostly positive assessment of the US economy. It’s likely that this will not be the only decrease in value between the USD-ZAR as the Dollar recovers from recent lows.
The current volatility does not breed confidence that the Rand will be able to maintain its recent gains against the Dollar. Comments from Fed Vice Chairman, Stanley Fischer showed that the US may hike interest rates within the year.
What to look out for this week: Inflation data will be released on Wednesday. It is looking likely to improve due to the stronger Rand, with our import-dependent economy prices on the decrease. As the price of imported goods decreases, the Rand should strengthen.
– Kimberly Wain