Last week Friday, saw the Rand trading at an eight week low ahead of new fears of the possible strike action in the Platinum sector
The Rand has continually weakened against the Dollar and the expected US data being released throughout this week may have a stronger impact on the Rand and cause it to weaken further
The South African Rand has shown its tendency to be one of the most volatile currencies starting the week just below R9.80 to the Dollar and getting as low as R14.92 to the British Pound.
South African inflation unexpectedly slowed in June as the Rand rebounded from a four-year low. The inflation rate declined to 5.5 percent in June from 5.6 percent in May. The Reserve Bank held the repurchase rate at 5 percent for the sixth time in a meeting last week.
Although there was a great deal of worry about this last week, other factors that might contribute to the stabilisation of the Rand, is a consolidation in commodity markets like gold and platinum and the news that China was set to achieve growth of 7% for 2013.
Last Thursday saw thin market conditions due to the US enjoying Independence Day. Liquidity returned on Friday although thoughts on the likelihood of the market going back to normal were uncertain due to traders taking long weekends.
The Rand strengthened in late trade on Thursday despite good US data that boosted the dollar against the EURO.
The Reserve Bank says that economy might be harmed if billionaire entrepreneur, who seeks South Africa’s exchange controls to be declared unconstitutional, as he tries to get his R250m recompensed from the Bank, is successful with his bid