The dollar weakened against its rivals in late trading on Friday, ending the week on the backfoot after the release of US inflation data.  US CPI index climbed to 6.8% YoY in November, amidst supply chain constraints, further prompting expectations of sooner than expected interest rate hike.  The dollar index reached a low of 96.427 before ending the session at 96.097. 


The euro saw some gains on the back of a weaker dollar, pairing up its previous session’s losses, also supported by stable GDP data from Germany. The single currency initially dipped to a low of $1.263 before reversing all the day’s losses to end the session firm at $1.311.


Pound Sterling was also up on the day, benefiting from a broader dollar weakness in Friday’s session. The focal point for the cable this week is the delivery of the Bank of England’s policy rate decision later in the week. A great deal of uncertainty still remains as it’s still unclear in which direction the BOE will move. The cable rose to a high of $1.3275 before ending the session at $1.3269.


The rand traded under immense pressure in its early activities on Friday, soaring to touch a high of 16.0865$, before staging  a brief recovery during the New York session to end the session slightly flat. Post the release of the US CPI inflation data, the rand was seen strengthening to a low of 15.8624$ on the back of a softer dollar. Although the local unit struggled quite to build on its gains as rising Covid cases continue to weigh on the currency. The rand ended the day flat at 15.9741$

We are empty on the data front today. The rand will continue to follow global trends and other market moving events, with developments around local and global Covid cases been something to look out for.

Expected ranges for the day:

      • USDZAR: R 15.8500/$ – R16.1000/$
      • EURUSD: $ 1.1275– $1.1350
      • GBPUSD: $ 1.3225 – $1.3330
This communication (“this communication”) has been provided by the corporate and investment banking division of Absa Bank Limited a registered bank in the Republic of South Africa, a subsidiary of Absa Group Limited, with company registration number: 1986/004794/06 and with its registered office at: Absa Towers East, 3rd Floor, 170 Main Street, Absa Towers West, 15 Troye Street, Johannesburg 2001, Republic of South Africa (“Absa”). Absa is regulated by the South African Reserve Bank. Absa has provided this communication for information purposes only and you must not regard this as a prospectus for any security or financial product or transaction. This communication is from an Absa Sales and/or Trading desk and is not a product of the Absa Research department. This communication has not been produced, reviewed or approved by the Absa Research Department, and is not subject to any prohibition on dealing ahead of the dissemination of research. The views in this communication are not a personal recommendation and do not take into account whether any product or transaction is suitable for any particular investor. This message is subject to the terms and conditions at: This communication is confidential and no part of it may be reproduced, distributed or transmitted without the prior written permission of Absa.

Contact Details

Tel: +27 (0)21 180 4295/6/7
Cell: +27 (0)79 014 4676
Fax: +27 (0)21 930 5493

P.O. Box 6550 | Parow East
Cape Town | South Africa

Company Registration Number:  2002/031454/07

Additional Links

We are Social

Contact Form