The South African Rand climbed to a three-week against the US Dollar and edged higher against the Pound as hopes grow that the approaching debt ceiling deadline in the US will be avoided and as a two-week long miners’ strike came to an end.
Anglo American Platinum (Amplats) managed to make a deal with the AMCU union of workers to put an end to a two-week long strike which has harmed mining output in Africa’s largest economy.
A spokesperson for Amplats said that miners had returned to work on Friday morning as the company clinched a deal. The end of the miners’ strike combined with the end of another strike in the auto industry and benefitted demand for the Rand.
Emerging market currencies like the Rand received a boost by signs of a possible resolution to the US budget impasse which has kept investor appetite for riskier assets restrained.
“If there is a deal, it would bring to an end a period of intense uncertainty. Of course, this might all have to be repeated in a few weeks, but the markets will nevertheless be much relived,” Rand Merchant Bank currency analyst John Cairns said in a note to clients.
The Rand’s gains are likely to be short-lived after data showed that fewer South African companies reported a rise in revenues last month suggesting that the nation’s economy is at risk of slowing down as concerns over a global slowdown rise.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.8788 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.7893 <
The Euro/South African Rand Exchange Rate is currently in the region of: 13.3957 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.3545 <
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.2263 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5079 <
(Correct as of 10:40 am GMT)
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