South African Rand Slippery Against US Dollar, Economic Woes Weigh

Published on Jul 05, 2023 16:49

The US dollar make a good recovery against the South African Rand today as recent array of correction in the dollar triggered decent buying ahead of the release of the last FOMC meeting minutes. The South African currency had tumbled to a record low around 19.90 mark against the US dollar at the start of June 2023. The currency edged up thereafter but overall tepid economic showing amid frequent power outages and lukewarm global outlook have kept the gains in check. The US Dollar is currently trading up 0.60% against the Rand at 18.80 mark right now. South Africa`s energy crisis may have reduced the nation`s economic growth rate by as much as 3.2 percentage points last year and is likely to dampen output until at least early 2024, according to the central bank. The currency had recorded a six week high around 18.10 mark in mid-July before resuming the weakening trend.