After the threat of rolling blackouts loom over South Africa, the Pound Sterling to South African Rand (GBP/ZAR) exchange rate rallied by around 2.32%. Compounding the Rand declination was a lower-than-forecast South African Reserve Bank Current Account. The Pound, meanwhile, has gained against the majority of its peers after the Bank of England (BoE) suggested that British households could handle a fractional rate increase.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 18.0550.
Looming Power Cuts Hurt Rand (ZAR) Exchange Rate
Eskom Holdings, South Africa’s leading energy provider, intensified managed blackouts on Monday amidst dampened supply. Chief Executive Officer Tshediso Matona said; ‘We’re using a lot more diesel than would have been normal […] The problem now is availability of diesel. All the majors had run out of diesel. We’re hoping the situation this week will be different.’
Pound (GBP) Exchange Rate Strengthens on BoE Survey
After the Bank of England (BoE) cited a survey regarding commissioned British consumers, the Pound strengthened against the majority of its currency rivals. The results of the survey prompted the British central bank to suggest that UK households could withstand gradual interest rate increases. The BoE stated that; ‘the proportion of all households with high mortgage debt-servicing ratios is currently low relative to its average since 1991.’
Adding to the Pound Sterling’s uptrend was improvement in the Lloyds Employment Confidence index, which advanced from 0 to 1.
The Pound Sterling to South African Rand exchange rate has dropped to a low today of 12.6230.
South African Rand (ZAR) Exchange Rate Dives on Domestic Data
In the wake of the publication of South African current account data, the Rand has softened against all of its most traded currency rivals. The South African Reserve Bank Current Account was forecast to advance from -235 billion to -185.5 billion, but the actual result only reached -230 billion.
Compounding the South African Rand’s declination is a surging US Dollar. After China’s trade data showed import and exports softened significantly, trader risk sentiment faltered. As an emerging-market currency, the Rand struggles under the weight of a bullish US Dollar.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Trend Higher
With trader risk aversion strategies dominating movement in the currency market, the Pound Sterling to South African Rand exchange rate is likely to continue trending higher.
The Pound Sterling to South African Rand exchange rate has advanced to a high today of 17.9800.
South African Rand (ZAR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
South African Rand,
,US Dollar,0.0871,
South African Rand,,Euro,0.0710,
South African Rand,,Pound,0.0555,
South African Rand,,Australian Dollar,0.1049,
US Dollar,,South African Rand,11.4830,
Euro,,South African Rand,14.0878,
Pound Sterling,,South African Rand,17.9397,
Australian Dollar,,South African Rand,9.5338,
[/table]
