The Rand was softer against the Pound despite the publication of data which showed that the number of people out of work in South Africa fell in the third quarter of the year.
According to Statistics South Africa, the unemployment rate fell from 25.6% to 24.7%. The number of people out of work fell by 114,000 to 4.6 million. The data is better than forecast as many economists were predicting the unemployment rate to remain the same as the previous quarter. The decline will be welcome news to South African politicians but for the country to reach its target of 14% out of work the national economy has to grow by 5.4% a year. Currently it is on target to grow by just 2.1% this year.
The Rand was weighed down after the Association of Mineworkers and Construction Union (AMCU) declared on Monday night that its members had voted in favour of strike action at one of the country’s Platinum mines. The announcement renewed concerns over the stability of South Africa’s labour market and the sustainability of its troubled mining sector.
The Pound meanwhile was able to strengthen against the Rand and other commodity based currencies after data showed that the number of mortgage approvals in the UK rose to a five-year high, adding to signs that the country’s property market is continuing to improve.
“These numbers reaffirm that the recovery is there but that it still has a long way to go,” said Jane Foley, a senior currency strategist at Rabobank International in London. “There’s a lot of good news already in the price of the pound and it will take something significant to push it higher. The economy is recovering but we would be getting ahead of ourselves to suggest there’s an explosion in growth.”
The Rand could strengthen against its peers, in particular the US Dollar if the Federal Reserve does decide to delay tapering its monetary easing programme until next year. The US Central Bank begins its two day long policy meeting later today and an announcement is due on Wednesday.
Current South African (ZAR) Exchange Rates:
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.8675
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.8695
The Euro/South African Rand Exchange Rate is currently in the region of: 13.5827
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.3822
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.1450
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.4561
(Correct as of 11:55 pm GMT)
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