The South African Rand has weakened against the Pound and fallen against the US Dollar for a third day straight as concerns mount over growth in China’s service industries.
Slowing Chinese growth has combined with worries over a renewal of the Eurozone debt crisis.
China’s non-manufacturing purchasing managers Index declined to 53.9 in June, adding to evidence of slowing growth in the world’s second largest economy and the biggest buyer of South African raw materials.
“When you get bad news out of China, like we did this morning, the Rand is going to suffer. It’s a volatile market and the Rand is a high-beta currency.” Said Ion de Vleeschauwer, the chief dealer at the Johannesburg based Bidvest Bank.
Concern over the political situation in the Eurozone has seen the Euro retreat against its peers a situation that has a negative effect on the Rand as the single currency region is South Africa’s biggest trading partner.
Against the US Dollar has weakened beyond the key R10 to the Dollar level due to a stronger US Dollar weakening demand for other global currencies. As the US economy continues to show signs of improvement the Rand is likely to weaken further.
“We’ve got a firmer Dollar across the board this morning,” said Absa Capital forex trader Duncan Howes. “We expect the rand to stay under pressure on the back of a firmer Dollar.”
Current South African Rand (ZAR) Exchange Rates
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.0644 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.2584 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.0183 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.1350 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5435 >
(Correct as of 11:55 am GMT)
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