Although the Pound has recorded widespread gains against its rivals as a result of the UK’s impressive retail sales figures, the Rand remains modestly stronger against its British Rival. The South African currency advanced on its US counterpart for a second day as the growing optimism regarding US economic recovery was dampened.
At the current exchange rate 1 Pound will purchase 15.4419 South African Rand as of 11:00 GMT
Yesterday James Bullard, President of the Federal Reserve Bank of St Louis, issued a rather gloomy warning against putting too much confidence in the economic progress seen in the US.
Bullard asserted that policy makers should be wary about altering policy on the basis of economic forecasts.
The GBP/ZAR exchange rate hit a low of 15.2687 Rand per Pound
The Rand softened yesterday as a result of a report showing that South African retail sales climbed at the most sluggish pace for eight months in June. The murder of a local miner also put pressure on the commodity-driven currency, but in the wake of Bullard’s comments the Rand has recouped losses.
As currency strategist John Cairns observes, an absence of South African economic news means that ‘Event risk today comes from the US [where slowing inflation] would further question Fed tapering, and accelerate Dollar weakness. Further Rand gains this morning are possible given ongoing Dollar weakness.’
US CPI data is due out at 13:30 GMT and could inspire Rand movement.
Investors will also be looking ahead to next week and the publication of South Africa’s own inflation data.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.9157 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.4419 <
The Euro/South African Rand Exchange Rate is currently in the region of: 13.1686 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.0932 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8738 –
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5753 <
(Correct as of 11:00 GMT)
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