The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has dropped slightly today after the UK debt figures didn’t provide the needed impetus for a rise.
Strong US Result could Shift Current GBP/ZAR Stalemate
The Pound Sterling (GBP) has fallen marginally against the South African Rand (GBP/ZAR) today, although Sterling may soar later on if the US Manufacturing PMI for August comes in above the forecast stagnation of 53.8 points.
Earlier…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has declined since yesterday, and is now trending in a narrow range.
UK Debt Reduction may Send GBP/ZAR Exchange Rate Back Up
The Pound Sterling (GBP) has trended narrowly against the South African Rand (GBP/ZAR) today after the Rand (ZAR) increased in value thanks to a rise in the price of gold and platinum. Despite gold falling to its lowest price per 100 ounces in 5 years this month, and platinum falling to its lowest price in 6 years this August, both metals have begun to rise steadily in value over the past 2 weeks; this is the surest sign so far of a recovery in demand for both resources.
Despite this respite for the Rand, the Pound may bounce back shortly if the UK Public Finances and Public Sector Net Borrowing figures for July come in with a strong drop to show a lessening of UK debt levels.
Earlier…
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate has risen today as the Rand (ZAR) faces increasing pressures as an emerging-market currency.
Pound Recovers from Interest Rate Spike/Crash to Power against the Rand Today
The Pound (GBP) has risen by 0.3% against the South African Rand (GBP/ZAR) today after suffering a highly sporadic performance over the last two days. The Pound shot up against the Rand (ZAR) on Tuesday after the UK annual CPI figure for July printed a 0.1% increase. However minor this growth was, it inspired a great deal of confidence in the Pound as a higher UK inflation rate has been tied to a UK interest rate hike by Bank of England (BoE) policymakers. The Pound crashed against the Rand yesterday but today Sterling has reclaimed the advantage. This comes as the UK monthly and yearly Retail Sales figures for July showed growth in consumer spending, although not as much as had been expected.
The Pound Sterling has risen by more than 0.6% against the Indian Rupee (GBP/INR), the Mexican Peso (GBP/MXN) and the Russian Ruble (GBP/RUB) today, but has fallen by over -0.6% against the Euro (GBP/EUR), the Czech Koruna (GBP/CZK) and the Danish Krone (GBP/DKK).
Rand damaged on all sides by Outside Factors
The South African Rand (ZAR) has had a run of bad luck today, declining in value against many of its competitors. The Rand has fallen against the Pound Sterling (ZAR/GBP) to 0.0492, the US Dollar (ZAR/USD) to 0.0769, the Euro (ZAR/EUR) to 0.0689 and the Chinese Yuan (ZAR/CNY) to 0.4914.
The Rand’s poor performance today comes from events that occurred last night in the US and China. The US Federal Open Market Committee (FOMC) minutes were released last night and although the ‘Greenback’ initially dipped in value due to confusion about the overall tone of the minutes, the US Dollar later gained considerable support to the detriment of the Rand.
In China, the Yuan (CNY) experienced a huge setback on its path to become a safe-haven currency when the International Monetary Fund (IMF) delayed adding the Yuan to the coveted list for at least a year. This harmed the Rand considerably, as China is one of South Africa’s largest export partners. Incidentally, two of South Africa’s biggest exports, gold and platinum, are experiencing a current uptrend in price, although this wasn’t enough to raise noticeable confidence in the Rand.
GBP/ZAR has Potential to Continue Rising when UK Debt Results come in
The Pound Sterling (GBP) is likely to retain its advantage over the Rand (GBP/ZAR) into the weekend, as a -£2.8bn reduction in the UK Public Sector Net Borrowing figure for July has been forecast, and a potential further reduction in the Public Finances figure for the same period is a distinct possibility.
Current GBP, ZAR Exchange Rates
The Pound Sterling to South African Rand (GBP/ZAR) exchange rate was trending in the region of 20.2800 and the South African Rand to Pound Sterling (ZAR/GBP) exchange rate was trending in the region of 0.493 today.
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