After strengthening last week the Rand has weakened beyond the psychological 10 Rand per Dollar level once more.
At the current exchange rate 1 US Dollar will purchase 10.1590 South African Rand as of 12:40 am GMT
The Rand declined against the US Dollar on Friday as US nonfarm payrolls data pleasantly surprised, and extended losses as worse than anticipated Chinese data was released over the weekend, upping demand for the safe-haven ‘Greenback’.
The tempestuous situation in Turkey has also lessened the appeal of emerging market currencies like the Rand.
According to Absa Capital the ‘encouraging’ US employment data ‘ensured that expectations that the Fed could start tapering its quantitative easing before the end of the year were maintained, as shown by Friday’s improvement in the Dollar, slump in the gold price and general weakness in emerging-market currencies. This week Rand participants will also be on the lookout for the next round of local manufacturing, mining and retail sales data. If these data prints on balance prove softer than expected, then the Rand could come under pressure.’
Rand could extend declines beyond 10.20 per Dollar
Concern over the frail health of former President Nelson Mandela and ongoing fears of further strike activity in the nation’s platinum sector have also weighed on the Rand.
Industrial production figures are due for release tomorrow. The expectation is for an increase of 3.5 per cent in April from the previous month’s 2.2 per cent decline.
Retail sales are due out on Wednesday. Month on month retail sales are forecast to dip by 0.6 per cent, but expand by 4.3 per cent year on year.
Current South African (ZAR) Exchange Rates
< Down > Up
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.1590 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.7695 >
The Euro/South African Rand Exchange Rate is currently in the region of: 13.4035 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.4909 >
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8777 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.9480 >
(Correct as of 11:40 am GMT)
Comments are closed.