Rand Weakens on Prospect of Interest Rates Cut
The South African rand declined today on the speculation the central bank will decrease interest rates to support the nation’s economy that feel the negative impact of the global economic slowdown.
South African Reserve Bank Governor Gill Marcus said the central bank will “actively monitor” global developments and is ready to take steps to ensure stability and liquidity in financial markets. Forecasters predict that the inflation report on August 24 will show annual growth of the consumer prices in South Africa was 5.2 percent in July, accelerating from 5 percent in the month before. The central bank’s target range is 3 to 6 percent.
USD/ZAR advanced from 7.1600 to 1.1790 today as of 10:44 GMT.
If you have any questions, comments or opinions regarding the South African Rand, feel free to post them using the commentary form below.
Tags
Categories
Earlier News About the South African Rand:
- Rand Near Monthly High vs. USD on Rate Difference, US Uncertainty (2011-07-26)
- Rand Weakened by Credit Rating Outlook for Greece (2011-07-05)
- Rand Weakens with Commodities on US Growth Forecast (2011-06-23)
- South African Rand Falls on Greek Crisis, Trims Losses (2011-06-20)
- South African Rand Climbs vs. Dollar on Greece's Bailout (2011-06-02)