As economic data for the UK impressed while South Africa’s retail sales report disappointed expectations the Pound strengthened against a floundering Rand.
The Pound Sterling/Rand exchange rate is currently in the region of 16.6042 as of 14:35 GMT
UK employment data exceeded expectations by showing that the UK economy added more positions than forecast in the three months through September.
The unemployment rate also declined to 7.6 per cent.
While the Pound broadly strengthened in response to the data, the British asset received further support as the Bank of England revised its timeline for unemployment falling to 7 per cent, bringing expectations forward to 2015 from 2016.
As London-based currency strategist Lee Hardman commented; ‘Both the Bank of England’s new projections and the development in terms of employment should be positive for the Pound. The Pound has room to strengthen further although some may argue that a lot of that has already been in the price.’
Sterling was able to post its first gain against the Euro for four days and rallied against other rivals, including the South African Rand.
The GBP/ZAR exchange rate hit a low of 16.3064 Rand per Pound
Meanwhile, before the release of South African retail sales data the Rand recovered from an 11-week low against the US Dollar.
While the emerging-market asset continued to feel the pressure at the prospect of Federal Reserve tapering taking place in December, it edged away from the 10.50 Rand per Dollar level recorded yesterday.
However, with South African retail sales climbing by just 0.2 per cent in September year-on-year instead of the 2.5 per cent increase expected, the Rand quickly shed its modest gains and dropped against peers like the Pound.
Augusts’ YoY sales gain was revised to 3.2 per cent.
Month-on-month sales dipped 0.7 per cent in September.
An absence of additional economic news for South Africa could limit Rand movement over the rest of the week, but UK news (including tomorrow’s retail sales figures) may drive GBP/ZAR fluctuations.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.3465 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 16.6042 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.8703 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.6593 <
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.5039 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.8256 >
(Correct as of 14:35 GMT)
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