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Your Currency News this week

20 Mar 2024
Author: Neil Helps

Your Currency News this week

The rand has demonstrated encouraging improvements in the past week, trading more than 2% stronger against the US dollar. Markets kicked off last week at R19.05/USD and promptly started trading more robustly, ultimately wrapping up the week at R18.67/USD.

The question is about the reasons for the movement in South Africa's economy. Is it because of improved economic conditions within the country or external factors such as a weaker dollar? 

Last week, the focus was mainly on the US dollar. In South Africa, the GDP growth numbers were better than expected but still lower than forecasted. This may not lead to a major shift in the country's economic outlook.

On Wednesday, the stock market became more unstable. This was because Fed Chair Jerome Powell hinted at a possible interest rate cut in the US this year. However, Powell did not give a specific timeline for this decision. He emphasized the importance of controlling inflation before implementing any rate cuts.

On Friday, the markets were unsure about what to do after the US Non-Farm Payroll numbers were released. The report showed that 275,000 jobs were added, which was more than the expected 198,000. This should have been good news for the dollar, but the unemployment rate also went up from 3.7% to 3.9%.

On Friday, the markets were uncertain after the US Non-Farm Payroll numbers were released. The report revealed that 275,000 jobs were added, exceeding the expected 198,000. This news should have been positive for the dollar. However, the unemployment rate also increased from 3.7% to 3.9%. As a result, the mixed data caused the US dollar to weaken last week. Now, investors are unsure about the future of the dollar.

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