GBP ZAR Exchange Rate fluctuating following Spike on Tuesday
The GBP ZAR exchange rate has dropped following a notable spike on Tuesday after South African finance minister Pravin Gordhan was called to court to face allegations of fraud.
‘Brexit’ Anxiety Prevents Pound (GBP) Capitalising on Tuesday’s Spike
Despite spiking to pre-flash crash levels, the Pound was unable to take advantage of the Rand’s weakness earlier in the week, as persistent ‘Brexit’ fears weighed on the British currency.
Investors remain worried about the prospect of a ‘hard Brexit’ that will cause the UK to lose its access to the single market in order to gain greater controls over immigration. The uncertainty on what impact this will have on British businesses has caused traders to become dovish towards the Pound.
EU leaders continue to rebuke claims from UK politicians that the UK will be able to maintain access to the single market. European Council president Donald Tusk is the latest to chime in on the debate as he reiterated that the EU would not compromise on its ideals of freedom of movement in order to give the UK access to the single market, saying that the only real alternative to a ‘hard Brexit’ is ‘no Brexit’.
South African Rand (ZAR) Stabilises Following Gordhan Allegations
The South African Rand (ZAR) has recovered after it was rocked by fraud allegations levied against finance minister Pravin Gordhan. Gordhan denies all charges and claims that they are ‘political mischief’. Speaking at the Thomson Reuters Africa conference he said;
‘It is for the public to ultimately judge who stands in the right here, who looks at principles and who wants social justice more than anybody else. It’s about which cause is the right cause. We are not about to give up on the core values of the ANC’.
Gordhan has long clashed with President Jacob Zuma and opposition parties and some members of the ANC claim he seeks a more pliant finance minister. Zuma, who faces his own corruption charges, is reluctant to fire Gordhan following his disastrous decision to fire the pervious minister – especially as he would risk the nation’s credit rating being downgraded to junk status.
Gordhan however has made his position very clear by saying that ‘If I don’t get alternative instructions, I’m here to stay’.
GBP ZAR Exchange Rate Forecast: Remainder of the Week likely to be Uneventful
The GBP ZAR exchange rate is likely to fluctuate at current levels for the remainder of the week as all data for the week has been released.
Next week should signal some more significant movement as the UK is set to release a slew of data, with Tuesday’s consumer price index likely to be off particular interest following the Pound’s recent plunge.
Current Interbank Exchange Rates
At the time of writing the GBP/ZAR exchange rate was trending around 17.27 and the ZAR/GBP exchange rate was trending around 0.05.
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