WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

South African Rand Climbs Briefly Back through 10 to the Dollar

Posted by WorldWideMarkets . on Jun 26, 2013 3:27:00 AM

krugerrand resized 600The South African rand has managed to rally and trade at under 10 to the U.S. dollar this week but the small daily moves are being very much driven by gold, a key South African export. The price of the yellow metal peaked in mid 2011 and the rand has been weakening with it ever since. One of the implications from the Fed backing off from QE is that the dollar strengthens against other currencies. A strengthening dollar also sends gold lower. So the South African rand gets a double negative whammy from both falling gold prices and the rising dollar against the rand itself. Despite the recent move in the rand to a little strength, few are expecting it to reverse the downside trend anytime soon. 


 

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!