The South African Rand has strengthened against the majority of its peers after the US Dollar fell against the Euro and other currencies.
Demand for riskier assets has improved after Germany posted stronger than expected industrial production data on Wednesday and as Australia and New Zealand both posted strong employment data. Signs of improvement in the UK economy and the USA and other nation’s have caused investors to seek out higher yielding currencies such as the Rand.
“We had an upside surprise on German industrial production on Wednesday and that resulted in the US Dollar slipping against the Euro in afternoon trade. That pulled the Rand from R9.07 per US Dollar to end just above R9 at the close and we are now trading below (R9) this morning‚” a local South African foreign exchange trader said.
The Bank RMB said that outside global forces were having a positive impact on the Rand.
“After an edgy start that saw a push through of R9.06-R9.08 the Rand per US Dollar leg has pushed all the way back to R9 and is testing a little lower this morning. Forces remain moderately favourable to the Rand, but there is no impetus for any sharp moves on what could be a slow day. The surprise yesterday was the jump in German industrial output.
‘The surprise yesterday was the jump in German industrial output. Maybe‚ just maybe‚ we could be seeing a revival in German – and therefore European – growth. The euro was a big gainer on the day.
“Local factors remain negative. Finance Minister Pravin Gordhan yesterday added to the calls for a rate cut. We also continue to await the Amplats announcement on whether they will go ahead with their planned retrenchment of 14,000 workers‚ thus setting off a round of strikes‚” the Bank concluded.
Turmoil in South Africa’s mining and labour sectors has done hefty damage to the nation’s economy over the past year.
Current South African Rand (ZAR) Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0843
The South African Rand to US Dollar exchange rate is currently trading at 0.1111
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0714
The US Dollar to South African Rand exchange rate is currently trading at 8.9977
The Pound Sterling to South African Rand exchange rate is currently trading at 13.9960
These exchange rates were correct as of 10:10 am GMT
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