The South African rand advanced today, rising for the third consecutive trading session, after the report showed that German economy grew in the last quarter on an annual basis, supporting positive sentiment about the economy of the eurozone.
Germany’s gross domestic product advanced 1.5 percent in the fourth quarter of 2011 from a year ago, though it was down 0.2 percent from the previous three months. The report was in line with forecasts and boosted the rand as it supported view that the global economy is recovering and improved prospects for South African exports. Consumer prices strengthened the currency further as inflation rose to 6.3 percent, being outside of the central bank’s target for third month and increasing probability of an interest rate hike.
USD/ZAR fell from 7.6540 to 7.6100 as of 14:22 GMT today, while the intraday minimum was 7.5770.
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