Dollar Weakness
The current strength of the South African Rand is mainly caused by a weak US Dollar. Many Analysts say the dollar may find some short-term improvements as investors and Forex hedging cover short positions in the currency, but many insist the trend for dollar weakness (the US dollar becoming weaker) is there amongst ongoing speculation the Federal Reserve could ease US monetary policy further.
The US actually benefits from a weaker US Dollar as it will improve their export competitiveness. (They will be able to export goods at a competing rate)
Categories: exchange rates, exchange rates news, south african currency Tags: dollar, south african rand, united states dollar
Exchange Rates Market
In finance, the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency. For example an exchange rate of 7 South African Rand (ZAR, R) to the United States dollar (USD, $) means that ZAR 7 is worth the same as one USD . The foreign exchange market is one of the largest markets in the world. By some estimates, about 3.2 trillion USD worth of currency changes hands every day.