Futures Market News
Rand impacted by slowing Chinese growth
Apr 13, 2012 01:15 PM
The South African rand lost value against the U.S. dollar on Friday as Chinese gross domestic product did not develop as quickly as economists projected during the first quarter of the year, Bloomberg reports.
The monetary unit of the largest economy on the African continent was diving toward a second consecutive week of losses to the world's reserve currency, as this week's losses are roughly 4 percent. The National Statistics Bureau indicated first quarter GDP of the Asian nation, which hosts the globe's second largest economy, checked in at 8.1 percent larger than from the same period of 2011, marking the slowest pace in 11 years.
"Yesterday the rand came back against all the majors, it's improved a bit and showing some stability. (The) pick-up in the rand points to some near-term stability," technical strategist Judy Padayachee with Absa told Reuters on Friday.
China is the largest buyer of South African raw material, government data from 2011 indicates. Reuters indicates approximately 30 percent of South African exports go to Asia.
Padayachee noted she anticipates additional recovery for the rand next week.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Insider Market Advisory FREE Trial
Information is power. Gain an edge with daily commodity futures market updates!
With your free trial membership, you’ll receive full access to trade analysis and recommendations for various markets, daily fundamental and technical market overviews, future price outlooks, and more!
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.