Africa-Press – Eswatini. During the month of November 2023, the Rand/Lilangeni exchange rate generally appreciated against the major trading currencies.
The Rand along with the Lilangeni strengthening against the US Dollar was primarily buoyed by the US Federal Reserve’s dovish sentiments, that signalled a potential for interest rate cuts in the short-to-medium term. The shift in the stance by the US Fed therefore boosted investor sentiments towards emerging market currencies with the domestic unit appreciating by about 2.8 per cent to record a monthly average of E18.53 against the US Dollar in November 2023.
Issues
It also appreciated by 1.1 per cent to average E23.00 against the Pound Sterling and by 1.2 per cent to average E20.03 against the Euro. Despite the positive global monetary policy developments, the Rand largely remained weaker, mainly due to domestic issues, which currently persist in South Africa, denting a full circle risk, taking appetite of the Rand globally.
Among the issues, is load- shedding, which remains a bind on growth and the negative trajectory of Transnet, which worsens logistical problems, hence negatively affecting the state of the economy.
As a result, on a year-on-year basis, the Lilangeni remained weaker by 5.5 per cent against the US Dollar, 12.0 per cent against the Pound Sterling and 12.3 per cent against the Euro. At the end of November 2023, the Lilangeni was trading at E18.71 to the US Dollar, E23.77 to the Pound Sterling and E20.54 to the Euro.
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