The Rand has recovered some its losses to reach as high as R9 against the US Dollar at midday after the currency continued to be bolstered by yesterday’s positive PMI data out of the Eurozone.
The better-than-expected PMI data has joined a lack of negative news out of South Africa to bolster investor confidence contributing to a renewed risk-on attitude.
Mark Kalkwarf, a senior portfolio manager at the Iquad group said; “A lack of news out of South Africa is aiding the Rand’s gain as foreigners buy back into local bonds.”
The recent strengthening of the troubled currency is a result of a decline in the negative talk of plans to nationalise the nation’s rich mining industry. The resolution of local labour issues and the small decrease in the nation’s unemployment rate are just some of the reasons.
The decline in unemployment has helped to reduce the perception that South Africa could be headed for more strike activity as a result of future job losses giving investors further reason to take a more risk-on approach to the currency.
Rates correct as of 13:05pm
The South African Rand to Pound exchange rate is currently trading at 0.07181
The South African Rand to Euro exchange rate is currently trading at 0.08320
The South African Rand to US Dollar exchange rate is currently trading at 0.11240
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1089
The US Dollar to South African Rand exchange rate is currently trading at 8.92676
The Pound to South African Rand exchange rate is currently trading at 13.9248
The Euro to South African Rand exchange rate is currently trading at 12.0185
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