Futures Market News
Rand loses value against greenback
Mar 14, 2012 09:42 AM
Losses of the monetary unit of the largest economy on the African continent are linked with the Federal Open Market Committee of the U.S. Federal Reserve declining to employ a third round of quantitative easing during its meeting on Tuesday. The policy-making arm of the Fed noted development and growth within the globe's largest economic system are at an acceptable pace.
"USD/ZAR is being pulled in two directions: the great risk environment versus the stronger U.S. dollar," states a client note penned by Rand Merchant Bank on Wednesday, according to Reuters. "Over time we still believe it will be the better risk environment that will come to dominate, but we look set to open the local trading session around the middle of yesterday's range."
The rand also lost value against the dollar amid concerns the South African Reserve Bank is committing more resources to acquiring U.S. dollars in the foreign-market exchange, according to a note penned by ETM analytics economists of Johannesburg and cited by Bloomberg.
The rand is likely to continue its bearish performance after the country releases retail sales data that economists project to indicate slowing growth, according to Reuters.
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: Futures Traders’ Guide to the WASDE
Improve Your Understanding of the Grain Markets!
With this guide, you will learn how to use these fundamental reports to forecast the price of Corn, Soybeans and Wheat. Now that the markets are open during the release of the WASDE, understanding how this very important USDA report can impact the markets is as critical as ever.
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.