The South African rand slipped today after China cut its growth forecast, hurting currencies that are dependent on commodity prices, including South Africa’s one. Uncertainty about the future of Europe added to the negativity on the Forex market.
China’s Premier Wen Jiabao decreased the target for the nation’s economic growth to 7.5 percent, while it has been 8 percent since 2005. This news had a knock out effect on commodities. The rand suffered as China was the biggest importer of South Africa’s raw metals in 2011.
USD/ZAR was up from 7.5080 to 7.5580 as of 15:53 GMT today, while the daily high was 7.5840.
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