The Pound Sterling to South African (GBP/ZAR) exchange rate strengthened by more than 1% as the Rand came under heavy pressure from reduced demand for riskier emerging market assets. Mounting concerns over the health of the global economy and tumbling commodity prices caused investors to seek shelter in safer havens.
Earlier the Pound Sterling to South African Rand (GBP/ZAR) exchange rate firmed on Wednesday after UK trade data showed signs of improvement and as inflation in South Africa fell to its lowest level in ten months.
According to the London based Office for National Statistics (ONS), the UK’s trade deficit narrowed in October as exports increased to nations outside of the European Union.
Exports increased to £24.336 billion, aided by the sale of silver to India.
Imports also decreased by £700 million due to a fall in the amount of oil bought from nations outside of the EU. The drop in oil purchased lead to the deficit with non-EU nations falling significantly.
The overall deficit narrowed to its lowest level in seven months to £9.620 billion, a drop from the preceding month’s figure of £10.506 billion and was slightly worse than the forecast figure of £9.5 billion.
The UK’s trade deficit with the 28-member EU narrowed to £6.038 billion, a fall of £400 million, as exports increased slightly despite the weakness of the Eurozone.
The deficit with non-EU nations also narrowed to £3.582 billion from the previous month’s figure of £4.060 billion.
The South African Rand meanwhile softened as a report showed that the annual rate of inflation in the nation slowed to its lowest level in ten months last month as tumbling oil prices sent fuel costs lower and as food prices rose at a slower rate than expected.
According to Statistics South Africa, the nation’s consumer price index increased 5.8% on an annual basis down from the previous month’s figure of 5.9%.
The figure was in line with economist expectations and matched the figure seen at the start of the year. Inflation is now at its lowest level since last year when inflation was at 5.4%.
On a monthly basis, inflation remained unchanged.
Pound Sterling to South African Rand (GBP/ZAR) Exchange Rates
Pound Sterling to South African Rand Exchange Rate Reached a Session High of 18.2270
Pound Sterling to South African Rand Exchange Rate Reached a Session Low of 17.8710
Pound Sterling to South African Rand Exchange Rate Traded in the Region of 18.1070
