The South African rand rose early today against a declining dollar, capping a volatile week brought on by concerns about a potential global banking crisis and its potential impact on monetary policy.
The rand was trading at 18.3300 against the dollar at 06:56 GMT, up approximately 0.4 percent from Thursday’s closing price.
So, when measured against a basket of world currencies, the dollar was down around 0.4%.
As a result, attention will now turn to the U.S. Federal Reserve’s monetary policy meeting the following week. Some investors are hopeful that the Fed will dial back its impulsive interest rate increases to reduce the strain on the financial industry.
On Friday, there are no notable forthcoming economic data releases in South Africa, implying that the value of the rand is likely to be influenced by global trends.
According to the latest economic data released this week by Statistics South Africa, the economy is expected to experience a downturn at the onset of 2023 due to recurrent power outages.