With minutes from the Federal Open Market Committee’s latest policy meeting due to blast their way through financial markets in just a few hours time the Rand was able to climb against the US Dollar. Although the South African currency lost a little ground against Sterling, it continued to trade below 15 Rand per Pound.
At the current exchange rate 1 Pound will purchase 14.9446 South African Rand as of 12:50 GMT
Despite China publishing worse-than-expected import/export data, which knocked commodity-driven currencies during the Asian session, the Rand put up a fight as investors covered short positions.
And the Rand wasn’t the only emerging-market currency to come out swinging on Wednesday, the Rupee also recovered from recent lows.
According to analysts with Morgan Stanley emerging markets are: ‘Showing some signs of stability this week which is consistent with our view that the technical position of the market is much healthier following the price adjustments seen in May/June.’
The GBP/ZAR exchange rate hit a low of 14.7156 Rand per Pound
However, gains are expected to be brought to an abrupt end by the US news due for release later today.
As Absa Capital stated this morning: ‘We believe the recent bout of rand short-covering is not justified on fundamental grounds and as we appear stuck in a 9.9000 – 10 Dollar range, we would look to go short rand at current levels ahead of tonight’s FOMC minutes and Bernanke’s address.’
Although the US news will trigger volatility in the currency market, movement in the GBP/ZAR pairing could occur later in the week as a result of tomorrow’s South African industrial production figures.
Current South African (ZAR) Exchange Rates
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.0200 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.9446 >
The Euro/South African Rand Exchange Rate is currently in the region of: 12.8471 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.1937 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8426 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5226 <
(Correct as of 12:50 GMT)
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