The South African Rand has weakened against the US Dollar after the nation’s latest Purchasing Managers Index declined for the first time in three months as factory output showed signs of contraction in March.
Earlier on Tuesday the currency was trading close to a two-week high against the US Dollar as it continued to benefit from buoyant sentiment after data showed that South Africa’s trade deficit narrowed sharply.
“The (trade data) came as a huge relief which many in the market are interpreting as early signs that the weaker rand is starting to have a positive effect in restoring balance to the trade and current account deficits,” said Tradition Analytics.
The deficit narrowed to 9.5 billion rand ($1.03 billion) in February from 24.5 billion rand a month earlier.
However, Kagiso Tiso Holdings PMI index declined to 49.3 in February, down from the 53.6 figure recorded in the previous month. The news is a cause for concern for Rand traders as Manufacturing contributes as much as 15% to the overall GDP of the country. The sector has come under pressure from rising electricity prices, labour strikes and transportation disruptions.
The ongoing Eurozone crisis has also weighed heavily on demand for South African goods. The EZ is South Africa’s biggest trade partner buying up to a third of the nation’s manufactured goods.
Current ZAR Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0846
The South African Rand to US Dollar exchange rate is currently trading at 0.1086
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0714
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1036
The South African Rand to New Zealand Dollar exchange rate is currently trading at 0.1288
The South African Rand to Canadian Dollar exchange rate is currently trading at 0.1099
These exchange rates were correct as of 12:20 am GMT
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