The dollar ticked higher against a basket of its peers, rising to high of 98.834 in Friday’s session buoyed by rising crude prices, a slight decline in the U Mich Sentiment data did little to dent the dollars allure.  After opening the session at 98.749 the dollar index touched a low of 98.400 and ended the session relatively flat at 98.789.


The euro was on the upward trend at the start of the session and posted marginal gains but failed to maintain its traction as it struggled for direction for the better part of the session, weighed by disappointing German IFO Business Climate print of 90.8 from a prior 98.9, echoing the decline in business confidence since the start of the Russian invasion in Ukraine.  The single currency touched a high of $1.1037 and ended the session at $1.0981.


The cable displayed some resilience, starting the session with an upward bias.  Pound bulls failed to garner any further bullish momentum, coming under pressure from the broadly stronger dollar on the day.  Market participants await further signals from BOE’s Governor’s speech for additional clues on how the bank aims to maneuver in this current challenging climate.  The cable rose to a high of $1.3224 and closed the session weaker at $1.3188.


After pulling off a great performance in the week and touching levels we haven’t seen in 5 months, the South African Rand retreated to close the week marginally weaker at R14.5375/$ compared to its previous close. Following inflationary pressure concerns, subsequently to the SARB raising interest rates by 25bp on Thursday with two members favoring a 50bp move, signaling a possibility of another hike soon.

Looking ahead, we are thin on the data front both locally and internationally with nothing to write home about. We expect the rand to follow cues from global economic developments.

Expected ranges for the day:

  • USDZAR:  R14.4800/$ – R14.8600/$
  • EURUSD:  $ 1.0875 – $1.1011
  • GBPUSD:  $ 1.3110 – $1.3179
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