The South African Rand is set to make further falls against the Pound and the majority of its peers as the markets prepare for the release of the latest jobs data from the United States which is likely increase expectations that the Federal Reserve will opt to begin tapering its monetary easing programme on the 17th of September.
The Rand began Thursday session fairly stable against the Dollar but with the rising speculation of tapering beginning soon investors are looking to pull out of the riskier emerging markets and turn once more to the ‘Greenback’. The ongoing labour strife in South Africa is also keeping traders and investors wary.
“The Rand is holding up remarkably well as it enters a busy end-week (but) expect considerable volatility today and even more so tomorrow,” said Rand Merchant Bank currency analyst John Cairns in a note to clients.
The Rand found some support in early trading after it was revealed that South Africa’s biggest gold mines were weathering the industrial strike relatively well as the workers unions become divided over pay demands.
The two rival unions the NUM and AMCU are both trying to gain the upper hand with the AMCU increasing its pay demands more than its rival. The NUM is asking for a 60% pay increase to 8,000 Rand ($783) a month for entry-level gold miners, while the AMCU is seeking 12,500 Rand. The demands jar with the Chamber of Mines’ offer on Aug. 29 of a 6% to 6.5% gain.
The split between the two has meant that workers of one union are still working, meaning that the impact of a total closure has been avoided.
Current South African (ZAR) Exchange Rates:
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.2904 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 16.0563 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.5658 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.0937 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.7976 >
(Correct as of 11:00 am GMT)
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