Early into local trading the Rand posted modest gains against peers like the Pound and US Dollar as foreign investors snapped up South African debt for a second day.
The Pound Sterling/Rand exchange rate is currently in the region of 16.9123 as of 12:20 GMT
The South African currency rallied as foreign investors purchased a net 2 billion Rand over the past two days, snapping a two-week run of outflows.
The development prompted this response from currency strategist John Cairns; ‘Foreign investments are arriving to rebuild sold-off positions. There have been two days of good bond buying.’
As the local session progressed the Rand received an additional boost in the form of surprisingly upbeat domestic reports.
The GBP/ZAR exchange rate hit a low of 16.7818 Rand per Pound
Economists might have expected a decline in South African manufacturing production in October, given September’s 3.3 per cent contraction, but factor orders actually rose by 1.5 per cent year-on-year.
Month-on-month, manufacturing production increased by 6.9 per cent, a much more significant jump than the 3.1 per cent advance expected.
An increase in food and beverage production was largely responsible for the rebound.
The Rand was also supported by separate figures showing a surge in mining and gold production.
The Rand rallied against the Pound despite the British asset being supported by UK industrial/manufacturing production data.
Before the European session closes, further GBP/ZAR fluctuations could be triggered by the UK NIESR GDP estimate.
Over the next few days the Rand could experience additional movement in response to South African inflation figures, retail sales report and producer price index.
Current South African (ZAR) Exchange Rates:
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.3215 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 16.9123 <
The Euro/South African Rand Exchange Rate is currently in the region of: 14.1869 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.4030 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.4428 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.7448 <
(Correct as of 12:20 GMT)
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