The South African rand was able to strengthen today even though the vast majority of commodity-related currencies experienced weakness due to concerns about possible stimulus tampering in the United States.
The Federal Reserve released the minutes of its policy meeting earlier this week, suggesting that reduction of asset purchases is likely later this year. The announcement resulted in widespread risk aversion on the Forex market. Most risky currencies remain under pressure, but the rand managed to pare losses as policy makers of emerging markets signaled about their readiness to support economic growth. Signs of recovery in Europe also helped the South African currency.
USD/ZAR fell from 10.2809 to 10.2286 as of 12:38 GMT today and its daily low was at 10.1770.
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