The Rand was trading steadily against the US Dollar on Wednesday and is expected to make gains as protesting miners at Anglo American mines went back to work.
The currency found support after investor fears that Monday’s violent incident in which over thirteen workers were wounded by security personnel, would not lead to further clashes at other South African mines.
AngloAmerica said that its workers clocked in for their shifts after a walk-out on Tuesday. Miners had downed tools in solidarity with their wounded colleagues. Thousands of them gathered in Rustenburg to complain about the company’s intervention in union affairs.
As a result of the flare up in violence investors dumped the Rand due to concerns that it might signal a return of the mining clashes that saw at least 50 people killed last year.
Brigid Taylor of Nedbank said; “We saw quite a lot of foreigners buying in the bond market yesterday. That’s seen the Rand strengthen to R8.85 levels. There are a couple of foreign bank which feel that the Rand is undervalued with regards to other emerging markets.”
The Rand could also see support if the latest South African inflation data comes in within market expectations. Economists are predicting that prices did not increase from December; instead they stayed at 5.7% year on year.
A worse-than expected result could see the currency reverse any gains.
Current ZAR Exchange Rates
The South African Rand to Euro exchange rate is currently trading at 0.0843
The South African Rand to US Dollar exchange rate is currently trading at 0.1130
The South African Rand to Pound Sterling exchange rate is currently trading at 0.0732
The South African Rand to Australian Dollar exchange rate is currently trading at 0.1092
The South African Rand to New Zealand Dollar exchange rate is currently trading at 0.1346
The South African Rand to Canadian Dollar exchange rate is currently trading at 0.1143
The South African Rand to Emirati Dirham exchange rate is currently trading at 0.4153
The South African Rand to Swiss Franc is currently trading at 0.1040
The South African Rand to Japanese Yen is currently trading at 10.5604
Comments are closed.