Rand firms 1.5% as dollar weakens
JOHANNESBURG - South Africa’s rand extended its gains on Thursday, rising by 1.7 percent to 14.3950 by 14:49 on the back of a weakening dollar.
The dollar slipped to its lowest since July 9 on concerns about a continued impact of a trade row between China and the United States weighed on the greenback.
The SA Reserve Bank Governer, Lesetja Kganyago, today announced that South Africa's interest rate would remain unchanged.
This was the Monetary Policy Committee's (MPC) fifth policy meeting of the year, which came against the backdrop of a sharp drop in the rand and the country's economy slipping into a recession, since the previous meeting in July.
The economy slipped into a recession after gross domestic product contracted by 0.7 percent in the second quarter following a 2.6 percent shrinkage in the first three months of the year, with the agriculture, transport and trade sectors struggling the most.
- REUTERS / BUSINESS REPORT ONLINE