Colombia: Rand gains ground in July
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.