US Jobs Data Makes Rand Stronger
The Rand drastically increased in value verse the US Dollar in the wake of the release of information about job creation in the USA.
There had been a lot of concern about possible shifts in the US economy (eg. the end of the stimulus measures and possible interest rate hikes) but recent information released now makes this seem less likely to happen immediately. This calmed down the markets and the fact that fewer Americans found new jobs actually benefitted the Rand.
Higher Returns Attract Investors
Investors like to put money into SA because of high interest rates. They have more of a chance of good returns (profit on their investments). Low rates in more stable first world countries like the USA or UK are less attractive right now. But should those rates go up well, then putting money into the “safe” markets becomes more attractive. That, in turn, hurts currencies like the Rand.
The Rand which was trading at over R19 to 1 US$ at the start of lockdown last year, has been getting stronger and stronger and is now trading around R13, 50.