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Foreign Currency Forecast for South African Rand – Rand remains stable as risk aversion falls

South African Rand

The Rand is remaining steady below the important R9 level after strengthening by 0.3% in early morning trade.

The rise came after the currency reached its lowest level in more than a week after yesterday’s nuclear bomb test spooked the markets and reduced demand for riskier assets. Now that the international community has come out united in its condemnation of the atomic testing the markets have become less risk averse.

The Rand posted a gain for the first time in three days this morning as stocks and metal prices advanced due to speculation that the global economic recovery is gathering momentum which led to the possibility of improved South African exports.

“Global equity markets continue to surge,” John Cairns, a currency strategist at Rand Merchant Bank in Johannesburg, said in e-mailed comments. “Risk-off from the North Korea nuclear tests rapidly faded and attention switched to the hopes for the global economy.”

The Pound has continued its declines and has slipped by as much as 1% against the Rand. The latest inflation data out of the UK has caused Sterling to tumble against all of its most traded peers.

“King’s saying it’s going to be a rocky road and policy makers will do more if necessary,” said thehead of dealing at Investec Bank Plc in London. “People are looking at the gloomy side. So far this year the market has taken any opportunity it can get to sell the pound. There are still a lot of sellers.”

Current ZAR Exchange Rates

The South African Rand to Euro exchange rate is currently trading at 0.0832

The South African Rand to US Dollar exchange rate is currently trading at 0.1122

The South African Rand to Pound Sterling exchange rate is currently trading at 0.0717

The South African Rand to Australian Dollar exchange rate is currently trading at 0.1085

The South African Rand to New Zealand Dollar exchange rate is currently trading at 0.1333

The South African Rand to Canadian Dollar exchange rate is currently trading at 0.1125

The South African Rand to Emirati Dirham exchange rate is currently trading at 0.4122

The South African Rand to Swiss Franc is currently trading at 0.1029

The South African Rand to Japanese Yen is currently trading at 10.4708

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