Rand Feels Weaker as GDP Trails Forecasts
The South African rand retreated today as nation’s economic growth was slower than investors had hoped for. Nevertheless, the losses were limited as Forex market participants still hope that Europe would deal with its problems and the Federal Reserve would ease its monetary policy.
South Africa’s gross domestic product expanded 3.2 percent in the second quarter on an annual basis, following the 2.7 percent growth in the first quarter. The consensus forecast was 3.3 percent. The data was a bit disappointing, but not that bad.
European Union President Herman Van Rompuy said that the bailout fund for Spain is ready and can be used quickly in case of necessity. Spain successfully performed a bill auction yesterday. Traders looked in the futures with hope that was further strengthened by speculations about quantitative easing from the Fed.
USD/ZAR was up from 8.4133 to 8.4175 as of 3:27 GMT today. EUR/ZAR rose from 10.5711 to 10.5718, while the daily minimum was at 10.5437.
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Earlier News About the South African Rand:
- Rand Falls with Slowing Inflation (2012-08-22)
- Rand Gains as European Leaders Prepare to Discuss Greece (2012-08-21)
- Rand Drops as US Non-farm Payrolls Spark Fear on FX Market (2012-07-06)
- Rand Fluctuates on Interest Rate Speculations (2012-06-27)
- Rand Falls on Weakening Prospects for Global Economic Growth (2012-06-25)