Pound to South African Rand (GBP/ZAR) Exchange Rate higher as Platinum mine strikes continue

Pound to South African Rand exchange rate chart

The South African was trading down against the Pound and the majority of its most traded peers on Monday as the emerging market currency remained under pressure from ongoing strikes in South Africa’s platinum mining sector and as concerns over emerging markets in general continued.

Sentiment for the Rand was weighed upon heavily as fears grow that the miners’ strike could potentially grow violent. Last week saw a union shop Stewart killed in a clash with police at one of the three Anglo American Platinum mines affected by the strikes.

A fall in commodity prices has also weighed upon the currency. Demand for the currencies of raw material exporters such as South Africa waned on Monday following the release of weaker than expected industrial production data out of the Eurozone.

Against the US Dollar and other peers the Rand is forecast to stay under pressure this week.

“While downside moves below 11.00 have been opened, we expect a sideways drift this morning and we wouldn’t be surprised to see some losses as the week progresses,” Rand Merchant Bank analysts wrote in a note.

The Pound meanwhile pushed higher after the currency was supported by the release of an index which showed that optimism among British businesses hit its highest level in 22 years in January.

According to the optimism index produced by the accounting firm BDO, business performance expectations jumped to 103.8 in January, up from the 103.4 in December. The highest reading since the index was first introduced in 1992.

The Rand could come under further pressure tomorrow if the latest unemployment data shows a worsening of the already high rate of 24.7%. Manufacturing production data is also due for release.