Although yesterday’s encouraging UK employment data boosted the Pound and prevented the Rand posting a significant advance on its British rival, the emerging market asset was able to approach a month-high against the US Dollar.
The Pound Sterling/Rand exchange rate is currently in the region of 15.7000 as of 11:40 GMT
The Rand’s advance on the US Dollar was aided overnight by the ongoing speculation regarding the Federal Reserve tapering quantitative easing and investors’ renewed appetite for higher-risk assets, and as local trading began the Rand consolidated gains.
As currency strategist John Cairns asserts; ‘Internationally, markets have been dominated by declining fears of tapering and declining risks of a military strike on Syria. Emerging-market and risk currencies, however, have battled.’
Similarly, according to one local trader; ‘Overseas investors seem to have got over their temper tantrum and are once again buying emerging market assets. At these levels we seem to be overbought, especially given the poor Australian employment figures, but for now we are holding steady.’
The Pound/Rand exchange rate experienced modest fluctuations today as a result of Bank of England Governor Mark Carney testifying to Parliament.
The GBP/ZAR exchange rate hit a high of 15.7455 Rand per Pound
Over the last few days the ongoing industrial action in South Africa has had little impact on the Rand, with much of the currency’s movement being dictated by developments in the US and Syria.
However, the Rand did retreat from its recent high against the US Dollar prior to the publication of a domestic mining production report for July, which economists expected to show a decline of 6.1 per cent.
But after the data proved to be stronger-than-expected the Rand recouped losses.
In June the nation’s mining production dropped by a revised 5.4 per cent year-on-year, but in July production actually increased by 0.6 per cent.
Additional movement in the USD/ZAR pairing could occur in response to US initial jobless claims 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: 9.9149 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.7000 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.1857 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.1635 <
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.0321 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5754 >
(Correct as of 11:40 GMT)
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