S. African Rand posts largest weekly streak of gain since 2002, rises to 5-month peak


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S. African Rand posts largest weekly streak of gain since 2002, rises to 5-month peak

On Friday, the 27th of December 2019, the South Africa’s rand soared to a fresh five-month peak as investors were reported ditching out US Dollar amid a return of risk-appetite in the FX market. On top of that, as Friday’s (December 27th) market had stoked investors from all over the world to engage in a year-end rally against the US Dollar greenback, the US Dollar index (DXY) measured against a basket of six major currencies on an average faltered by 0.49 per cent to 97.05, while traders were heavily betting on emerging markets for better yields, as the South African rand had winded down Friday’s (December 27th) market 0.75 per cent higher against the American currency to 14.0274 rand per US Dollar, remarking its largest intra-day gain in nearly three-weeks, while the South African currency ended up the week 1.42 per cent higher against the greenback, scoring gains for eighth straight week in a row.

Aside from that, the South African rand gained nearly 5 per cent since mid-December despite a bucket of dismal data, a softening economy alongside a nationwide blackout by the state-backed utility firm Eskom, while upon Friday’s (December 27th) market curtain off, the South African rand had also reported its largest weekly streaks of gain since late 2002, when it had posted for 12 straight weekly gains between September 23rd to December 9th.

Apart from the South African rand, Africa’s second-largest economy by size having the most developed industrial sector in the continent, had also witnessed a firmer government bonds, while bond yields due to be matured on 2026 had been at 8.165 per cent on Friday’s (December 27th) session closure.