With positive US jobs data bolstering the ‘Greenback’ and adversely affecting commodity-driven currencies last Friday, the Rand was softer against the British Pound and US Dollar as trade began today.
At the current exchange rate 1 Pound will purchase 15.2689 South African Rand as of 10:25 GMT
Commodity-currencies like the Rand were knocked at the close of last week as an unexpectedly strong US employment report upped the odds of the Federal Reserve tapering stimulus in the months ahead.
The Rand gained on the Pound last week as the Bank of England issued a surprisingly dovish policy statement, intimating that the central bank may keep rates at record lows for longer than expected.
The Rand is expected to weaken further as the week continues and minutes from the latest Federal Reserve policy meeting are released.
Federal Reserve Chairman Ben Bernanke’s fiscal statement, which also occurs on Wednesday, is expected to shed some light on a potential timeline for the Federal Reserve tapering stimulus.
The Pound to Rand (GBP/ZAR) Exchange Rate hit a high of 15.3466
Hints that US stimulus could be reined in within the next few months could see the Rand’s bearish trend with its peers continue.
Domestic data which could have an impact on the Rand exchange rate includes this Thursday’s industrial production figures. Economists have forecast that industrial production declined by 3.0 per cent in May, both month-on-month and year-on-year.
Industry experts will also be looking ahead to next week’s South African consumer confidence and retail sales figures, as well as the Reserve Bank of South Africa’s rate decision.
Current South African (ZAR) Exchange Rates
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.2818 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.2689 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.1632 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.1319 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8333 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.6029 >
(Correct as of 10:25 GMT)
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