South African Rand Rebounds as Power Cuts Ease, Though Economic Worries Remain

The South African rand strengthened against the U.S. dollar, extending gains as the dollar weakened.
The rand had weakened earlier this week due to Eskom reinstating severe power cuts in South Africa.
Power cuts have damaged South Africa's economy this year.
South Africa's current account deficit widened in Q2 according to data.
The Johannesburg Stock Exchange indexes closed higher on the day.

reuters.com

Relevant topic timeline:

8/20/2023

Emerging economies are pushing to end the dollar's dominance. But what's the alternative?

### Summary The strength of the U.S. dollar against other currencies, such as the Nigerian naira and Zimbabwean dollar, has made it difficult for local consumers to buy foreign goods, leading to economic troubles in these countries. ### Facts - 💰 The strength of the U.S. dollar has pushed the price of foreign goods beyond the reach of local consumers in Nigeria. - 💸 Many developing countries are unhappy with the dominance of the U.S. dollar in the global financial system. - 🌍 The BRICS bloc, which includes Brazil, Russia, India, China, and South Africa, will discuss their grievances against the dollar at a meeting in Johannesburg, South Africa. - 💵 The alternatives to the U.S. dollar, such as the euro and China's yuan, have not been able to rival its dominance. - 🇦🇷 In Argentina, a presidential candidate is calling for the U.S. dollar to replace the country's troubled peso. - 💼 In Zimbabwe, the U.S. dollar is widely used in transactions due to the instability of the Zimbabwean dollar. - 💸 Vendors in Zimbabwe are even mending damaged U.S. dollar bills for a small fee due to a shortage. ### Credit By: Dionne Searcey and Constant Méheut Source: The Washington Post

8/21/2023

South African rand weakens ahead of BRICS, CPI

The South African rand weakened ahead of the BRICS summit and monthly inflation figures.

8/21/2023

South African rand weakens ahead of BRICS, CPI

The South African rand weakened ahead of the BRICS summit and monthly inflation figures.

8/30/2023

South African rand falls as dollar finds feet; credit extension slows

The South African rand weakened as the dollar rebounded and credit extension in the country slowed more than expected.

9/5/2023

South African rand slips as power cuts bite, GDP in focus

The South African rand weakened due to the country experiencing the worst power cuts on record and ahead of the release of second quarter GDP data.

9/14/2023

South African Rand Weakens Following Drop in Mining Output

The South African rand weakened against the dollar after mining figures showed a drop in production, contradicting analysts' predictions of an increase.

10/4/2023

Rand Rallies as Dollar Weakens, But Power Cuts and Cost Pressures Weigh on South African Economy

The South African rand traded slightly higher against the US dollar as the weakening of the greenback supported risk sentiment, following a few days of weakness for the rand.

Topics

Posted 9/8/2023, 4:03:00 PM

South African Rand Rebounds as Power Cuts Ease, Though Economic Worries Remain

The South African rand strengthened against the U.S. dollar, extending gains as the dollar weakened.
The rand had weakened earlier this week due to Eskom reinstating severe power cuts in South Africa.
Power cuts have damaged South Africa's economy this year.
South Africa's current account deficit widened in Q2 according to data.
The Johannesburg Stock Exchange indexes closed higher on the day.

reuters.com

Relevant topic timeline:

8/20/2023

Emerging economies are pushing to end the dollar's dominance. But what's the alternative?

8/21/2023

South African rand weakens ahead of BRICS, CPI

The South African rand weakened ahead of the BRICS summit and monthly inflation figures.

8/21/2023

South African rand weakens ahead of BRICS, CPI

The South African rand weakened ahead of the BRICS summit and monthly inflation figures.

8/30/2023

South African rand falls as dollar finds feet; credit extension slows

The South African rand weakened as the dollar rebounded and credit extension in the country slowed more than expected.

9/5/2023

South African rand slips as power cuts bite, GDP in focus

The South African rand weakened due to the country experiencing the worst power cuts on record and ahead of the release of second quarter GDP data.

9/14/2023

South African Rand Weakens Following Drop in Mining Output

The South African rand weakened against the dollar after mining figures showed a drop in production, contradicting analysts' predictions of an increase.

10/4/2023

Rand Rallies as Dollar Weakens, But Power Cuts and Cost Pressures Weigh on South African Economy

The South African rand traded slightly higher against the US dollar as the weakening of the greenback supported risk sentiment, following a few days of weakness for the rand.