Rand hurtles towards 1.9 per cent weekly drop after posting the biggest decline of any currency.
The South African Rand exchange rate was trading in the region of 0.1122 against the US Dollar as of 10:47 am GMT
Yesterday the Rand shed a whopping 2.4 per cent, the most significant decline of any developed currency.
The South African currency’s losses were triggered yesterday morning by concerns that the nation’s government will prove unable to finance a widening budget deficit while battling a weakening economy.
Figures released by the South African Revenue service revealed that in February the trade gap reached 24.5 billion Rand. This follows Decembers 2.7 billion Rand trade gap, and is 14.8 billion Rand more than forecast.
This result pushed the Rand towards a four-year low, and the currency could experience additional movement in the hours ahead.
With the weaker Rand supporting demand for internally produced goods South Africa’s purchasing managers index was able to rise from 49.1 to 53.6 – marking a return to growth in factory output for the first time in six months.
Although economists expected an increase, they estimated that the figure would only climb to 49.5 per cent, remaining below the 50 level which separates growth from contraction.
Prior to today’s data analyst Chris Becker asserted: ‘Yesterday’s reaction to the trade deficit number is simply a taste of what’s to come if external demand does not pick up to bolster South Africa’s export performance.’
Then, following the publication of the PMI data, industry expert Abdul Davids commented: ‘The significant improvement in new sales orders may reflect a turnaround in demand for locally manufactured goods. Tentative indications of an improvement in the EU and US economies at the start of the year may have contributed to the increased demand for manufactured goods and a sustained recovery in demand will require improved gross domestic product growth in these regions.’
Current ZAR Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0851
The South African Rand to US Dollar exchange rate is currently trading at 0.1109
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0738
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1084
The South African Rand to New Zealand Dollar exchange rate is currently trading at 0.1337
The South African Rand to Canadian Dollar exchange rate is currently trading at 0.1147
The South African Rand to Japanese Yen is currently trading at 10.2801
These exchange rates were correct as of 10:48 am GMT
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