In spite of this week’s less-than-impressive South African manufacturing data, the Rand ends the week stronger against the US Dollar and has managed to recoup some losses against the Pound.
At the current exchange rate 1 Pound will purchase 15.1935 South African Rand as of 11:20 GMT
The commodity-driven Rand was boosted during the Asian session by better-than-forecast data from China.
Earlier this week China’s economic outlook improved when the nation’s trade balance figures pleasantly surprised, now separate data has shown that China’s industrial production expanded by more than forecast last month.
Year-on-year factory production was up 9.7 per cent, significantly better than the 8.9 per cent increase economists expected.
In response to the news one senior economist asserted: ‘The data confirms that China has bottomed out.’
Similarly, economist Lu Ting intimated that this progress clearly reveals the ‘impact of the government’s pro-growth actions in July which stabilized confidence.’
In the aftermath of the report’s release the Rand advanced on the US Dollar and strengthened modestly against the Pound. (Although gains against Sterling were limited as the British currency was supported by positive economic news for the UK).
The GBP/ZAR exchange rate hit a low of 15.1181 Rand per Pound
And it seems that the Rand may continue to climb against its US rival.
According to economist IIan Solot, for emerging market currencies like the Rand ‘the worst is probably over […] Although I still see them underperforming, interest rates are higher, so I think they’re stabilising.’
However, if domestic economic data doesn’t show signs of improvement, home-grown concerns will undermine the Rand.
South African data to look out for next week includes the nation’s retail sales figures, due out on Wednesday.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.7612 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.1935 <
The Euro/South African Rand Exchange Rate is currently in the region of: 13.0732 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 8.9394 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8473 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5504 <
(Correct as of 11:20 GMT)
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