Rand Rebounds on ECB Efforts

The South African rand strengthened today as the European Central Bank announced it’s planning to lend dollar to the European bank in an effort to support the European banking system and to boost liquidity. The ECB announced it’s going to perform liquidity operations in tandem with the Federal Reserve, the Bank of England, the Japan of Bank and the Swiss National Bank. The effort of the central banks reduced concerns about the Eurozone banking system. Analysts think that the optimism may be short-live, but for now it bolstered riskier assets, including the rand. USD/ZAR fell from 7.3730 to 7.3710 as of 17:10 GMT. Today’s intraday high was 7.460 and the intraday low was 7.3120