The South African rand extended its decline versus the US dollar today as the favorable US economic reports strengthened the dollar, while the slump of commodities weakened the rand.
The good economic data from the US this week, including reports about the services industries and the employment, allowed the US currency to strengthen. At the same time, commodities were declining, causing the riskier currencies, including the rand, to weaken. The economists say that it’s just temporary occurrence, caused by the profit taking at the beginning of the year.
USD/ZAR advanced for the fourth straight day, rising from 6.689 to 6.761 as of 13:14 GMT today, the highest level in two weeks.
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