Although the Rand slumped against peers including the US Dollar and Pound after last week’s positive US employment figures increased the likelihood of the Federal Reserve tapering stimulus before the end of the year, the currency rallied today in response to domestic and foreign news.
At the current exchange rate 1 Pound will purchase 14.9730 South African Rand as of 12:45 GMT
With the US Dollar softening slightly ahead of tomorrow’s announcement from Federal Reserve Chairman Ben Bernanke the Rand was able to climb. Speculation surrounding Bernanke’s speech, and the publication of minutes from the Federal Open Market Committee’s most recent policy meeting, also caused gold to hit a two-week high – something which boosted commodity-driven currencies like the Rand.
The currency was additionally bolstered as an illegal strike at a major South African platinum company, Anglo American Platinum Ltd, came to an end.
The Pound Sterling to Rand Exchange Rate hit a low of 14.8394
In response to the Rand’s movement Johannesburg-based forex expert Jim Bryson asserted: ‘It looks like the strike news is starting to lose its effect. The Rand is strengthening in line with everything else. With Bernanke speaking tomorrow, the market is in wait and see mode.’
However, while the Rand advanced by 1.1 per cent against the US Dollar during the local session, it could shed those gains tomorrow (and perhaps weaken further) if the Fed implies that easing could be reined in sooner than expected.
The main South African data to watch out for this week, the nation’s industrial production report, is due out on Thursday at 12:00 GMT.
Economists have forecast that production dropped by 0.3 per cent in May, year-on-year, after climbing by 7 per cent in April.
Current South African (ZAR) Exchange Rates
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.0737 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.9730 <
The Euro/South African Rand Exchange Rate is currently in the region of: 12.9422 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.2701 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.9100 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.7156 >
(Correct as of 12:45 GMT)
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