Colombia: Rand gains ground in July
July 15, 2019
The rand strengthened in recent weeks, thanks to favorable developments on the global stage. On 12 July, the rand traded at 14.03 per USD, marking a 5.6% appreciation from its value on the same day in June. The rand was also up 2.5% year-to-date but was down 5.1% over the same month of the previous year.
At the beginning of July, the rand clawed back some of its losses after falling on the release of worse-than-feared first-quarter national accounts in early June and the South African Reserve Bank’s changed rate outlook, indicating a rate cut by the end of Q1 2020. The rand climbed on the prospect of the ECB loosening its stance, indicated by President Mario Draghi’s recent remarks that a deterioration in economic conditions would prompt more stimulus; the U.S. Federal Reserve maintaining a dovish tone; and signs of progress in negotiations between the U.S. and China to resolve the ongoing trade dispute.
Author: Nihad Ahmed, Economist