South African rand stronger on lower trade deficit

The South African rand gained in relation to all major currencies on Wednesday, setting the stage for its biggest monthly gain in four years on the possibility of an interest rate hike there and on a decline in the nation’s trade deficit in March.

The rand traded at $7.5775 to the US dollar and at R11.794 versus the euro, while a rand was worth ¥13.808 in late morning trade in New York.

The US dollar gained slightly on the euro Wednesday morning in New York and was ready to notch its first monthly gain on the shared currency this year on speculation that after a cut today, the US Federal Reserve will signal an end to the current string of interest rate cuts.

At just past 11 a.m. in New York, the dollar traded at $1.5563 to the euro while it had also gained in relation to the yen, to ¥104.4950.

Like the South African rand, the Canadian dollar was stronger versus all major currencies, mainly on the chance that US interest rate cuts are about to end, with a loonie worth 98.92 cents at just past 11 a.m. in New York.

The Japanese yen saw declines as the Bank of Japan held interest rates at 0.5 percent and gains in US equities markets led investors to seek out risky carry trades financed by the low-yielding yen.

The yen traded at ¥162.6255 to the euro, while its biggest declines were in relation to the Brazilian real and the Canadian dollar, to ¥61.598 and ¥103.3683 respectively.

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