The South African Rand weakened against the US Dollar after the release of economic data showing that retails sales growth slowed and the South African unemployment rate rose again to 25.2%.
According to Statistics South Africa Growth in South African retail sales slowed to 1.9% on a year-by-year basis in April, down from a revised figure of 2.7% in March. On a month by month basis, sales were down by 0.6% in April but increased by 2.8% in the first quarter of 2013 compared with the same period in the previous year. Economists had been expecting year on year sales growth of 3.5% for April.
“There are numerous factors still pressurising the consumer: we’ve got elevated fuel prices, we’ve got electricity price hikes and the rand has resulted in inflationary pressures rising.
“Also, we’ve seen household debt has been deteriorating. All of these are weighing on the retail sector. We believe that risks remain tilted to the downside in the retail sector, which is in line with the view that the broader economy is headed for a slowdown” Said Jana Le Roux an economist at ETM.
Adding to the Rand’s weakness was the release of data that showed that the unemployment rate climbed to 25.2% in the first quarter, up from the 24.9% recorded in the previous three months.
South Africa’s Central Bank has held its benchmark lending rate at 5%, the lowest level in more than 30 years, since July to shore up consumer spending, growth and employment in Africa’s largest economy. Labour unrest and concerns over Africa’s biggest economy’s infrastructure are ongoing and are certain to be a drag on the currency for the foreseeable future.
Current South African (ZAR) Exchange Rates
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.9675
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.6126
The Euro/South African Rand Exchange Rate is currently in the region of: 13.2598
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.4842
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.9196
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.7931
(Correct as of 14:10pm GMT)
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