Rand Falls as Central Bank Concerned by Volatility

The South African rand weakened today on signs that the central bank may intervene to curb volatility of the exchange rate.

Central bank’s Deputy Governor Daniel Mminele said that swings of the currency are “somewhat exaggerated”. He explained that policy makers favor a flexible exchange rate, but are worried by “abrupt and disorderly movements”. Such comments led to speculations that the South African Reserve Bank may intervene to reduce price movements.

USD/ZAR rose from 10.0432 to 10.0706 as of 16:00 GMT today.

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