Business News: SA Rand Reaches 2 Year High Against US Dollar

Business News: SA Rand Reaches 2 Year High Against US Dollar

- The South African rand has reached a two-year high against the US dollar as of 9am on Thursday, 3 June, according to various reports

- The rand traded at R13.54 to the dollar, creating the highest position it has held against the US currency since February 2019

- Reports also revealed that the SA economy experienced a major downfall due to the Covid-19 pandemic and loadshedding thus making the strength of the rand a feat

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On Wednesday, the South African rand rose to its most lucrative value against the US dollar. The rand sustained a strong projector fuelled by a sustained rebound in global economies and positive US Treasury data.

The rand was trading at R13.54 at 9am on Thursday, 3 June, marking the highest position against the dollar since February 2019.

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With the local South African economy suffering due to loadshedding and the negative impacts of Covid-19, the rand’s upward ascent has been primarily fuelled by global factors recent rally mainly on the back of global factors, namely higher commodity prices.

Business: Rand hits two-year high, going strong against dollar
The South African rand has reached a two-year high, going strong against other currencies. Image: Waldo Swiegers/Bloomberg
Source: Getty Images

Following reports by BusinessTech, The acceleration in global growth will induce positive knock-on effects for South Africa, according to Investec chief economist Annabel Bishop.

The rand grows

According to Reuters, the rand was trading at the below-mentioned rates against primary currencies at 9am on Thursday, 3 June:

Dollar/Rand: R13.54 (+0.21%)

Pound/Rand: R19.17 (+0.11%)

Euro/Rand: R16.51 (+0.05%)

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Rand started peaking in May

Previously, Briefly News reported that the rand traded at R14,05 to the United States dollar in May. The rand strengthened due to a higher yield on South African government bonds, according to SABC News.

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What the rand traded at in May

At the time of writing this report, the rand was at R19.74 compared to the United Kingdom’s pound sterling; it rated at R17.70 against the euro and R11.30 to the Australian dollar. The strength of the rand was credited mainly to a weaker dollar after the US jobs report for April was lower than expected and the unemployment rate rose to 6.1%.

The public broadcaster also stated that it remains unlikely that interest rates in the US will rise any time soon, keeping the dollar weaker, thus strengthening the rand.

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