The South African Rand is trading steadily against the Pound and is holding ground above the important 10R mark against the US Dollar as the markets turn their attention to next week’s Federal Reserve policy meeting.
The South African currency is unlikely to make any gains throughout Friday’s session due to investors sitting back and getting nervous over whether the Federal Reserve will choose to make reductions to its quantitative easing programmes.
Following a release of weaker than expected jobs data investors are unsure as to whether the American Central Bank will choose to scale back its monthly asset purchasing programme which has resulted in billions of Dollars flooding into emerging markets.
“Having obsessed over the Fed for months, the markets experienced a relief rally of sorts this week but this was never sustainable ahead of next Wednesday’s decision on tapering,” said Rand Merchant Bank currency analyst John Cairns in a note.
“Expect jumpy and nervous trade.”
Earlier in the week the Rand managed to hit a monthly high after the currency was supported by the release of stronger-than-expected factory output data and the ending of a number of strikes across several of South Africa’s most important economic sectors. The currency then lost its run of gains as doubts and concerns over the possible withdrawal of foreign investor funds began to weigh upon the currency.
The US Federal Reserve’s September policy meeting minutes are published on the 18th of September. The data will show whether the Bank will opt to start tapering its monetary easing programme as well as whether the Bank’s Policy makers voted on increasing or lowering interest rates.
Current South African (ZAR) Exchange Rates:
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.9728 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.7728 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.2539 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.2246 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.1237 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.6427 >
(Correct as of 12:00pm GMT)
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