If you keep an eye on the latest exchange rate between the US dollar and our own rand, you will have noticed that the ZAR undergoes a considerable change this week. The South African currency hit a 28-month high against the greenback, sparking optimism in several investment circles. However, the good news has little to do with Mzansi…
Latest exchange rate between the US Dollar and the Rand for Thursday, June 3
From 12:15 on Thursday, the exchange rate of the dollar to the rand was $ 1: R 13.55, which is the lowest since February 2019. The value has fallen 7% in the last month alone, and South Africa is looking to gain a foothold against the world’s most powerful currency. Experts wereted no time in popping bubbles, however.
Reuters financial analysis this week explained that a cut in U.S. interest rates – affecting the country’s ability to borrow and lend – played a significant role in the WEAKENING of the dollar, causing the rand to appear relatively strong. .
“The recent rally in the Rand has been mainly driven by global factors, including rising commodity prices benefiting resource-rich South Africa and expectations that US borrowing rates will remain low for longer. Riskier currencies, like the rand, thrive on US interest rates that stay low because they take advantage of the differential.
What is behind the ZAR push?
A more local source also attributed the fluctuation in the exchange rate to activities across the pond, rather than anything happening on our shores. Bianca Botes, Global Executive Director of the South African Citadel, also notes that the United States has made more liquidity available for its COVID-19 stimulus plans.
“It all comes down to the United States. There is inflation, more economic stimulus there, and increased growth in this area. Nothing we do on the ground here in South Africa really contributes to the exchange rate. “ | Bianca Botes
- Unfortunately for Cyril Ramaphosa, he will not be able to claim this victory for which he is responsible.
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This notice was published: 2021-06-03 10:13:18