Until a week ago, the rand was the world’s best-performing currency, according to Bloomberg. When President Jacob Zuma announced a reshuffle of his cabinet, replacing the minister and deputy ministers of finance, all of the gains made since the start of 2017 were obliterated.
The Pound US Dollar (GBP USD) exchange rate’s attempts to mount a recovery this morning have been hampered by reports that UK consumer spending slowed in the first quarter of 2017.
The Eurozone Sentix Investor Confidence index rose for the fourth month in a row in April to 23.9 from 20.7 in February, beating estimates of an increase to 21.0, in a further sign that the Euro -Zone economy continues to grow. April's reading, released this morning, rose to its highest level since August 2007. "The euro area is making further economic progress," said the report from data provider Sentix. It added: "The Euro -Z one thus stands out positively from other global regions."
The Central Bank of Nigeria on Sunday vowed to sustain its intervention in the foreign exchange market to ensure liquidity in that segment of the financial sector.
The rupee further dropped by 32 paise to 64.60 against the dollar due to growing safe haven appeal for the American currency owing to increased geo-political risks and higher chances of a tighter US monetary policy.
Next trading day's important events
- USDJPY: 111.19
- EURUSD: 1.0591
- S&P 500: 2363.82
- NASDAQ: 5901.17