Pound Sterling to South African Rand (GBP/ZAR) Exchange Rate – Rand tumbles on balance of trade data

Pound to South African Rand exchange rate chart

The South African Rand has fallen against the Pound and other major peers after data showed that Africa’s largest economy posted its first trade deficit for the first time in three months as imports of oil soared and as exporters failed to benefit from the weakened Rand.

According to the Pretoria based South Africa Revenue Service, the nation’s trade balance posted a deficit of 17.1 billion Rand in January.

Economists had been forecasting a deficit of 12.2 billion Rand. Imports soared by 26% to 94.7 billion Rand as oil sales increased due to the increased demand for fuel. Exports meanwhile grew by 0.1% to 77 billion Rand as the export of base metals increased by 12%.

The Rand is also under pressure from the escalating situation in the Ukraine. Suspected Russian troops have occupied two airports in the Crimea heightening the risk of a military conflict in the troubled region.

Sterling found support early in the session after a consumer confidence report showed that confidence among British shoppers held at the highest level seen since 2007. The GFK survey stayed at -7 in January, a figure which matched the forecasts made by economists.

The currency also received support after the Nationwide Building Society earlier said that U.K. house price inflation rose 0.6% in February, in line with expectations. In January, house price inflation was revised up to a 0.8% increase from a previously estimated 0.7% rise.

Against the Euro the Rand also tumbled after better than expected inflation data for the Eurozone eased pressure on the European Central Bank to take action at next week’s policy meeting.