The CAD/ZAR currency pair hovered above a 45-month low of 11.6293 on Wednesday, as the Rand continued to draw support from rising Gold prices ahead of the outcome of the Bank of Canada’s and the South African Reserve Bank’s policy meetings.
Gold breached the $5,200 threshold for the first time on Wednesday amid safe-haven rush. South Africa is a major producer and exporter of the yellow metal.
The Bank of Canada is expected to keep its benchmark interest rate intact at 2.25% later today.
The minutes from the BoC’s December meeting showed that policy makers agreed the “current stance is appropriate” and noted it was “difficult to predict the timing or direction of the next rate move.”
The BoC Governing Council said it viewed the current policy rate about right to keep inflation near 2%, while supporting the economy through this period of structural adjustment.
Officials also reaffirmed that they were ready “to respond if the outlook changes materially.”
Meanwhile, the SARB is largely expected to keep its benchmark interest rate without change at 6.75% at its January 29th meeting after a 25 bps cut in November.
The CAD/ZAR currency pair was last up 0.34% on the day to trade at 11.7265.
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