The South African rand fell today as the growing concerns about the global economy, caused by the signs of the US economic expansion’s slowdown, damped the demand for the currencies of the emerging markets.
The analysts predict that today’s report would show that the service industries in the US expanded with the slower pace than earlier. This forecast, together with yesterday’s unfavorable reports about the home sales, the factory orders and the personal spending, worsen already dark outlook for the global economy. The pessimistic sentiment of the traders makes them shun the riskier currencies, like the rand.
USD/ZAR jumped to 7.310 from the opening level of 7.269 today as of 10:25 GMT.
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