The South African rand strengthened today as exporters took benefit of the low exchange rate and converted their earning to the local currency, increasing demand for the rand.
Fundamentals are still adverse to the commodity-related currency. The South African economy depends on exports and prices for raw materials were under pressure recently. Prospects for reduction of Federal Reserve’s stimulating measures had very negative impact on the commodity market, putting additional pressure on currencies of export-oriented countries.
USD/ZAR fell from 10.1003 to 10.0875 as of 12:51 GMT today.
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