The rand has strengthened to its strongest level against the dollar in 16 months, currently trading at R14.05 to the dollar.
The rand is at R19.74 to pound sterling; R17.7 to the euro; and R11.3 to the Australian dollar. The euro is at $1.21, and the dollar is at 108.81 Japanese yen.
This is mainly due to a weaker dollar after the US jobs report for April was weaker than expected and the unemployment rate rose to 6.1%.
It’s unlikely that interest rates in the US will rise anytime soon, keeping the dollar weaker, which strengthens the rand.
But the rand is also strengthening due to a higher yield on South African government bonds, compared with those in the developed world, where some bonds trade at negative yields, causing money to flow into South Africa, providing another reason for the rand to strengthen.
Looking at commodities, Gold is trading at $1 837 and platinum at $1 259 per ounce, while Brent crude oil is at $68.60 a barrel.