Rand Rebounds After Touching Lowest Level in 2012
The South Africa traded sideway, following the drop to the lowest price this year, on speculations that it fell too much and as exporters profited from the weak rand, converting their overseas earnings to the local currency.
Technical analysts say that yesterday’s huge drop made the South African currency undervalued and a bounce can be expected. Fundamentals did not change, though, and are still negative for the rand. Commodities are continuously sliding down and South Africa’s currency is heavily dependent on prices for raw materials. At present, the rand shows tendency to resume decline.
USD/ZAR traded at about 8.5540 as of 13:59 GMT today, following the earlier rise from 8.5270 to 8.5750 — the highest rate since November 24.
If you have any questions, comments or opinions regarding the South African Rand, feel free to post them using the commentary form below.
Earlier News About the South African Rand:
- Rand Slides to This Year's Low as CPI Below Expectations (2012-05-23)
- Rand Falls to Lowest at Three Weeks as Head of Roads Agency Resign (2012-05-08)
- Rand Gains for Second Day on European Bonds & US Corporate Profits (2012-04-25)
- Rand Slips as China's Economic Growth Slows (2012-04-13)
- Rand Gains on Fed & ECB Stimulus (2012-04-12)