ZAR Gains on Rising National Reserves
The South African rand grew today against the U.S. dollar (and the other world currencies too, because dollar is rising today) as the report showed an increase in the countrys foreign currency reserves in March.
Its worthy to say that the rand usually fluctuates in a linear dependence to the U.S. dollar it rises sharper than dollar, but when dollar is bearish rand is falling even faster. So, this day is not an exception, though, there might be also an influence from the foreign exchange reserves report.
The South African Reserve Bank reported that by the end of March gross reserves grew 0.55% from $34,203 million to $34,394 million. Thats quite a good result, because the gold prices dropping decreased the value of the countrys gold reserves in March. Foreign loans also declined last month in South Africa and the net reserves increased faster than the gross reserves 1.23%, from $32,723 million to $33,125 million.
USD/ZAR currency pair fell to 7.826 on Forex as of 9:55 GMT today. Rand rose from the previous close (April 4) price of 7.876 rands per dollar.
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