Prior to the release of retail sales data for South Africa the Rand had softened against a bullish Pound but gained against the US Dollar for the first time in three days.
The Pound Sterling/Rand exchange rate is currently in the region of 15.8870 as of 12:40 GMT
While unexpectedly positive UK employment data boosted Sterling against peers like the Rand, the emerging-market asset advanced on its North American rival as US lawmakers continued to work on forming a debt-ceiling solution – boosting higher risk currencies.
As currency strategist John Cairns noted; ‘Sentiment in global markets has swung from yesterday’s hope that a US political deal will be reached, to despair overnight, and back to hope this morning. Once has to assume that a last minute deal will be struck; the alternative is too daunting to contemplate.’
Similarly, industry expert Gavin Friend noted; ‘The broad view is that whatever is going on in terms of the political spat, there will be a deal. If people think there’s going to be a deal, equity markets will go up’.
The GBP/ZAR exchange rate hit a low of 15.8060 Rand per Pound
Following the release of South Africa’s retail sales report the Rand was able to extend gains against the ‘Greenback’ and recoup losses against the Pound.
The Statistics South Africa report showed an unexpectedly strong increase in retail sales.
Sales growth quickened to 3 per cent in August, marking a second monthly increase and smashing economists’ estimates for a 1.1 per cent gain.
July’s sales growth was revised to 2.9 per cent.
Month-on-month sales increased by 1.1 per cent.
This was the week’s major piece of South African news, so investors will be looking to US developments to drive additional Rand movement in the days ahead.
Tomorrow’s UK retail sales figures could also influence the direction taken by the GBP/ZAR pairing.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.9525 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.8870 <
The Euro/South African Rand Exchange Rate is currently in the region of: 13.4651 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.4105 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.3230 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5845 <
(Correct as of 12:40 GMT)
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