Reuters reports that the South African Rand has shed its value. This follows an upward trend in the United States manufacturing data wich resulted in demand for the dollar.
Statistics show that the Rand as at 0640 GMT, was at 0,35% weaker at 14, 2150% per dollar compared to a close of 14, 1650 overnight in New York.
The demise of the rand is a clear departure from a one week high hit after Moody’s Corporation delayed a potential credit rating downgrade. After the decision that came late on Friday, the currency recovred more than 3% to its best level since March 21. The currency however came under selling pressure yesterday owing to traders who exited their positions. They had targetted levels above 14, 70 on the short-side.
Moreover, a rebound in the US factory activity and a strong increase in construction spending revived hopes on the US economy previously expected to slow sharply. This boosted the green back and treasury yields at the expense of the Rand.
Demand for the Rand was further diminished by another weak South African PMI print and the measure of factory activity recording a third consecutive decline in March.
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More: Reuters.com