The dollar reigned supreme in Friday’s session as a glimmer of hope in ceasefire talks sparked the dollar’s rally. The dollar index edged in a positive territory, pelting its safe-haven counterparts, and came close to its five-year high to peak above the 99 handles. The dollar index closed the session at 99.126.
The euro tracked lower on the day as the ECB’s rate tightening inspired rally faded. The single currency showed some resilience at the start of the session but came under pressure as the dollar extended its reach. The euro tested a low of $1.0900 and finally ended the week on the backfoot at $1.0909.
The pound sterling was also bruised by the dollar’s dominance in Friday’s session. The cable found little support in upbeat GDP data that hinted at recovery from the pandemic. The pound, along with other major currencies remained clouded by the state of affairs in the eastern European region. The cable pushed through to a high of $1.3125 to end the week at $1.3036.
The South African rand pulled off an impressive performance last week, consolidating gains consistently to close the week on a positive note, finding support from a commodity thriving environment seen in the week. It further found impetus from President Vladimir Putin comments about progress being made surrounding Russia-Ukraine talks on Friday. The rand closed the week at R15.0150/$ and reached a low of R14.9775/$.
We are thin on data on the local front and nothing to write home about on the international front. We expect the rand to find cues from ongoing developments surrounding Russia-Ukraine.
Expected ranges for the day:
- USDZAR: R14.9500/$ – R15.1500/$
- EURUSD: $ 1.0865 – $1.0965
- GBPUSD: $ 1.2985 – $1.3045