The rand was trading at its best level in five months in late trade on Friday‚ as the dollar continued to lose value.
The rand reached its firmest level since about two weeks before President Jacob Zuma fired Nhlanhla Nene as finance minister in December.
The greenback fell after first quarter US gross domestic product (GDP) figures came in weaker than expected on Thursday‚ putting pressure on the dollar and in turn supporting commodity prices and commodity-based currencies.
US GDP grew at an annual pace of 0.5% in the three months to March‚ less than market expectations of 0.7%.
Meanwhile the Bank of Japan’s announcement on Thursday that it would not provide fresh monetary stimulus strengthened the yen‚ putting further pressure on the dollar.
This follows on the US Federal Reserve’s decision on Wednesday not to raise interest rates in the near future.
On the local front‚ SA recorded a trade surplus for the first time this year in March as the growth in exports outpaced that of imports‚ also providing positive sentiment in the local currency markets.
Rand hits best levels against dollar in months
The rand reached its firmest level since about two weeks before President Jacob Zuma fired Nhlanhla Nene as finance minister in December.
The greenback fell after first quarter US gross domestic product (GDP) figures came in weaker than expected on Thursday‚ putting pressure on the dollar and in turn supporting commodity prices and commodity-based currencies.
US GDP grew at an annual pace of 0.5% in the three months to March‚ less than market expectations of 0.7%.
Meanwhile the Bank of Japan’s announcement on Thursday that it would not provide fresh monetary stimulus strengthened the yen‚ putting further pressure on the dollar.
This follows on the US Federal Reserve’s decision on Wednesday not to raise interest rates in the near future.
On the local front‚ SA recorded a trade surplus for the first time this year in March as the growth in exports outpaced that of imports‚ also providing positive sentiment in the local currency markets.
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