South African rand firms as dollar slips, stocks dip
At 1500 GMT, the rand was trading at 13.9200 against the dollar, 0.41% firmer than its previous close.
The rand, up more than 5% against the dollar this year, was benefiting from a rise in commodity prices as well as the U.S. currency’s weakness, said Annabel Bishop, chief economist at Investec.
“Absent the global commodity price boom, the rand would not be seeing the degree of strength it has experienced this year against the U.S. dollar,” said Bishop.
The dollar languished near four-month lows against major currencies on Monday. [FRX/]
Since the end of March, the greenback has retreated steadily as optimism about the global economic recovery grows. But that move down seems to have slowed as traders begin to anticipate higher U.S. interest rates coming when the U.S. Federal Reserve reacts to signs of increasing inflation.