So, the Rand has benefitted from a bounce in gold and oil prices over the last few days and not to mention that the South African trade deficit narrowed sharply in 2009, and actually showed a surplus in December as the recession caused a dip in imports. This certtainly provided some short term relief for the rand as SA pulled out of recession in the third quarter of 2009. Indeed some good news.
Meanwhile the pound which had made gains in January 2010, got smacked with a credit downgrade on the banking sector by ratings agency S&P last week, and had a weaker than expected fourth quarter growth figure. UK's inflation data showed consumer price inflation up to 2.9% in December, well above the BoE's 2% target.
This outlook is improving for SA and it looks like we are heading back towards the recent highs at 11.50 - 11.65.
So expect UK Buyers of the Rand considering covering any requirement as soon as possible in case this latest slide takes them to new lows and us to new highs.
Nice, nice for us .
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