The Pound Sterling to South African Rand (GBP/ZAR) exchange rate strengthened by around 0.22% on Tuesday morning. This is as a result of dampened risk sentiment with oil prices tumbling to fresh lows. The Pound Sterling, meanwhile, is generally holding steady against its major peers after housing data met with expectations.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 18.0540.
Yesterday…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate edged higher by around 0.14% on Monday. This can be attributed to the strength of the US Dollar causing emerging-market currencies to soften. A complete absence of domestic data is likely to see the Pound to South African Rand exchange rate continue trending higher.
The Pound Sterling to South African Rand exchange rate is currently trending in the region of 18.0320.
Pound Sterling (GBP) Exchange Rate Holding Steady on Absence of Data
A complete lack of domestic data to provoke changes has caused the Pound Sterling to hold steady against many of its peers. Any movement is as a result of fluctuations in the currency market. To compound the lack of movement is quiet trading during the holiday period.
The Pound Sterling to South African Rand exchange rate has fallen to a low today of 17.9870.
South African Rand (ZAR) Exchange Rate Softens on US Dollar Surge
Whilst the US Dollar strengthens after seeing better-than-expected third-quarter growth, emerging market currencies have softened. As the Federal Reserve prepares to tighten monetary policy, global economic disparity has become more evident, causing a lack of demand for risk-correlated currencies such as the South African Rand.
‘What is happening to emerging market currencies right now has a lot more to do with external factors than internal ones,’ said Alan Wilde, head of fixed income at Barings Asset Management. ‘The divergence trade, where the US is doing a lot better in economic momentum compared to everything else, is still on,’ said Luis Costa, emerging markets currencies strategist at Citi.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate Forecast to Strengthen
Given that Monday’s economic calendar is particularly sparse, with a complete absence of data pertaining to both the UK and South Africa, the Pound Sterling to South African Rand exchange rate is likely to continue trending higher.
The Pound Sterling to South African Rand exchange rate reached a high today of 18.0700.
