The rand weakened overnight as yesterday’s strong US retail sales added to the possibility of a September rate rise from the US Federal Reserve. The news saw the USD/ZAR pass its weakest level since 2001 to open at 12.88/$ this morning. The rand continues to struggle against the pound and euro as we saw all-time and 2015 weakness of 20.10/£ and 14.36/€ respectively.

Expect more rand volatility because of the release of today’s EU inflation numbers and US production (14:00pm) figures. It seems things in China have eased as the yuan strengthened overnight, but a cautious eye is still to be kept on the slow down of Asia’s biggest economy. Have a great weekend!

Commentary by Chris Williams