The South African Rand has weakened against the Pound and declined for the first time in three-days against the US Dollar as the markets await the release of retails sales data which is expected to show a further slowdown of the South African economy.
Economists are expecting Wednesday’s data to show that retail sales in South Africa slowed to 3% in June, down from the 6.2% recorded in May. If it does come in as forecast the data will add to last week’s data which showed slowdowns in both the manufacturing and mining sectors. Slow growth is likely to stop the nation’s Central Bank from raising interest rates.
The South African Reserve Bank has maintained interest rates at 5% for more than a year in a bid to support growth in the struggling economy.
Earlier in the session the Rand was trading firmer against the US Dollar as local traders took action to catch up with the currency’s rises following the three day weekend for the Women’s Day national holiday.
The Rand and other emerging market currencies are expected to consolidate in the weeks leading up to the US Federal Reserve’s monetary policy meeting in September.
“Our view remains that the rand will be in a holding pattern until the Fed policy decision in five week’s time. That said, the unit has been surprisingly volatile and we should expect another choppy week,” John Cairns of Rand Merchant Bank said in a note.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.8609 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.2517 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.1150 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.0255 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8863 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5645 >
(Correct as of 15:45 pm GMT)
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