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.
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.
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.
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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Source: Briefly News
