South Africa’s rand currency has gained ground over the US dollar, ending with 15 units to the greenback at midday trading following a starting rate of 16 rands to the dollar due to a number of factors, APA learnt on Thursday.
The local currency rand is currently enjoying positive sentiments due to strong company results as well as rising commodity prices, according to Statistics South Africa (Stat SA).
This development comes after January’s consumer price inflation rate slowed to 5.7 percent from 5.9 percent in December 2021, and retail sales were better than expected in December 2021 at 3.1 percent, Stat SA said.
This also pointed to the inflow of foreign currencies as was reflected in the strengthening of government bonds, the agency added.
An inflow of foreign currency strengthens the rand, while an outflow weakens it.
Although the rand has strengthened to 15 units to the dollar so far this year, it was as strong as 13.50 rands to the greenback in June last year, and as weak as 19.30 units in April 2020 – two months into the Covid-19 pandemic.
NM/jn/APA