The US Dollar index found some reprieve on Friday, reversing all of its previous day’s losses on the day, aided by increasing US 10-year T bond yields, along with safe-haven demand.  Despite disappointing retail and manufacturing economic data print, the dollar ended the session firmer at 95.165 after testing a high of 95.266.


The euro found itself on the back foot, as rising yields lifted the dollar, with the ECB President, Christine Lagarde’s comments about policy accommodation also weighing  on the single. The euro tested a high of $1.1482 before taking a nosedive to end the session weaker at $1.1413. 


The cable fell victim to a stronger dollar, despite positive UK economic data on Friday, which failed to save the day. The potential of Prime Minister Boris Johnson possibly stepping down, as he’s rumored to have had gatherings during COVID-19 lockdowns, also weighed on the pound.  The pound closed the session at $1.3684, after dipping to a low of $1.3654.


The rand was seen tracking higher early in the session, gathering positive momentum, but came under pressure at the start of the US session as the dollar came in aggressively. Although the local unit managed to regain its composure, as risk sentiment rebounded to end the week marginally stronger. The local unit strengthened to a low of R15.2675/$, after trading to a high of R15.4440/$ and ultimately ending the session at R15.3650/$.

There is no data on the cards locally, we expect the rand to be driven by global headlines.

Expected ranges for the day:

  • USDZAR: R15.3000/$ – R15.5000/$
  • EURUSD: $ 1.1380 – $1.1460
  • GBPUSD: $ 1.3625 – $1.3715
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