The South African Rand is trading close to its lowest level in seven years against the Pound and is at a five-year low against the US Dollar following increased speculation that the US Federal Reserve will end its stimulus programme later this year and as monthly manufacturing data came in mixed.
According to statistics South Africa, industrial production in the country fell by -1% on a month by month basis in November. The decline was a sharp drop from the previous month’s figure of a gain of 6.9% and was below economist forecasts for a rise of 0.59%.
On a yearly basis however production was up by 0.3% compared to 2012. A slowdown compared to that year’s figure of 1.5%. The figure beat economist forecasts for a yearly decline of -1.15%.
South Africa’s manufacturing sector has been plagued by labour strife and power cuts as the nations creaking power grid strains under demand.
The Rand was also weighed upon against the Pound after the UK posted a narrowing of its trade deficit and as inflation data out of China disappointed the markets.
The Rand is likely to tumble further to perhaps fall to a ten-year low later in the session. If Thursday’s US jobless claims data comes in strongly the Rand will fall. The currency will also be affected by the European central Bank and Bank of England interest decisions due later in the session.
Current South African (ZAR) Exchange Rates:
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.8088
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 17.7740
The Euro/South African Rand Exchange Rate is currently in the region of: 14.7076
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.6018
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.9291
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.9733
(Correct as of 11:30 am GMT)
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