Rand strengthens against dollar

Rand strengthens against dollar

Story link: Rand strengthens against dollar

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In South Africa on Tuesday, the rand fell 1.2 percent in relation to the dollar to R6.4259, a seven-month low.

This decline came after the African National Congress announced a desire for a more competitive exchange rate, which it said should be achieved either by “aggressive” purchase of dollar assets while the rand is strong or by speeding up liberalization of exchange controls.

The strength of the rand has more than doubled since 2001.

Meanwhile, in New York, the US dollar was fell only slightly lower than its six-month highs against the euro, sterling, and Canadian dollar.

It was up against the yen on mixed economic data. The dollar was trading at $1.2641 against the euro, at $1.8392 in relation to sterling, and at C$1.2655 against the Canadian dollar at mid-day.

The dollar was up 0.2 percent in relation to the yen, at ¥107.12.

In Asian trade, however, the yen was trading at ¥106.57 in relation to the dollar before news that Japan’s deflation seems to be becoming entrenched even further.

The yen also fell off early highs of ¥134.55 in relation to the euro and ¥195.63 against sterling to end 0.2 percent down in relation to the euro at ¥135.48 and down 0.3 percent to ¥197.13 opposed to sterling.