The rand declines in South Africa while the dollar rises due to risk aversion

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Friday, 22 March 2024 saw a decline in the rand against other currencies of developing markets, as the US dollar strengthened due to a general increase in risk aversion.
The rand closed at 18.98 against the dollar at 1523 GMT, down roughly 0.8% from the previous level.
The dollar began a second week of gains, rising by almost 0.32% compared to a basket of world currencies.

Andre Cilliers, a currency strategist at TreasuryONE, stated that “the dollar reversed all of Wednesday’s post-FOMC losses yesterday after the Swiss National Bank surprised markets by cutting its benchmark rate by 25 basis points, and U.S. economic data surprised to the top side.”

In a research note, he stated that a dovish view from the Bank of England provided more support for the dollar.
Due to South Africa’s public holiday on Thursday, there was as expected little trade on Friday. No releases of economic data were scheduled.
In the stock market, the larger all-share (.JALSH), opens new tab index ended 1.15% higher while the Top-40 (.JTOPI), opens new tab index closed up 1.35%.

The benchmark 2030 government bond for South Africa had a yield of 10.425% and was flat.
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