Yo-yo rate will be a constant

Yo-yo rate will be a constant battle

The Rand strengthened against the Dollar early on Friday as the South African Reserve Bank signalled a rate hike in the coming months.

Yo-yo rate will be a constant

Compared to its closing levels on Thursday last week, the Rand was 0.43% stronger and climbing. The market was also waiting for United States inflation data on Friday to show where the currency would swing.

Last week the Rand strengthened against the Pound, but the currency has still not returned to the 17’s. The outlook for the Rand ever being that strong again is dim. The Rand strengthened to a low of 18.35 on Wednesday, but was then quickly knocked back to close at 18.56 GBP/ZAR at the end of the day. It is a concern that this yo-yo rate will be a constant battle going forward.

What to look out for this week?

Tuesday has US data being released. The Consumer Confidence Index and Durable Goods data will have an impact on USD rates against major currencies. We have important data coming from the US, UK and Canada on Friday, which could lead to interesting round-off to an otherwise quiet week.




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