The Pound Sterling to South African Rand (GBP/ZAR) exchange rate advanced by around 0.34% on Friday morning. This can be attributed to dampened market sentiment amid anxieties regarding Russia’s financial crisis. The Pound, however, strengthened against many of its major peers despite less-than-impressive consumer confidence.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 18.1530.
Yesterday…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate recovered losses on Thursday afternoon. This can be attributed to the better-than-expected British retail sales having greater impact than the emerging-market surge caused by the Federal Reserve rate delay. The South African Rand, meanwhile, has strengthened against many of its major peers after demand increased following the Federal Reserve Open Market Committee meeting.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 18.0960.
Pound (GBP) Exchange Rate Advances on Retail Sales
In the aftermath of better-than-expected retail sales, the Pound strengthened against nearly all of its major peers. On a yearly basis, Retail Sales increased from 4.9% to 6.9% in November, trumping the market consensus of a drop to 4.5%.
‘There were clearly some people betting these numbers would be strong,’ said Graham Davidson, a spot currency dealer with NAB in London. ‘Sterling rose steadily into the number and then came off a bit quite quickly afterwards.’
The Pound Sterling to South African Rand exchange rate has fallen to a low today of 17.9330.
Rand (ZAR) Exchange Rate Gains on Fed Decision
After the Fed opted to delay a benchmark rate increase until mid-2015 at the earliest, demand for emerging-market assets increased significantly. Compounding the Rand’s upsurge has been a fall in inflation, bringing the score closer towards the target set out by South Africa’s central bank. The yearly Producer Prices Index dropped from 6.7% to 6.5% having avoided an increase in November.
‘The moves in emerging markets are hardly surprising. Developing economies have been among the biggest beneficiaries of the Fed’s easy-money policies,’ stated Kristen Scholer, writing for The Wall Street Journal.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Fluctuate
Given that the Fed rate has caused a surge in demand for high-risk assets, the currency market is subject to intense volatility on Thursday. Therefore, it is likely that the GBP/ZAR exchange rate will experience heightened volatility.
The Pound Sterling to South African Rand exchange rate has climbed to a high today of 18.1380.
