A surprising GDP result for South Africa pushed the Rand into freefall yesterday, with the currency falling beyond a four-year low against the US Dollar.
At the current exchange rate 1 US Dollar will purchase 9.8957 South African Rand as of 09:45 am GMT
Although economists were expecting a slide in quarter-on-quarter growth (to a seasonally adjusted 1.6 per cent in the first quarter) and a 0.1 per cent dip in year-on-year GDP to 2.4 per cent, the actual results were far worse than expected.
The nation posted quarter-on-quarter growth of just 0.9 per cent and less-than-impressive year-on-year growth of 1.9 per cent.
In the immediate aftermath of the report’s publication the Rand fell to 9.7105 against the Greenback, before weakening to as much as 9.74 before the close of trade.
According to the growth figures, manufacturing and agriculture eased in the first three months of this year, offsetting gains in the nation’s financial and mining industries.
The results prompted one industry expert to state: ‘Manufacturing was negative. Growth is very modest [and] could probably have an impact on employment that we have seen growing steadily, albeit slowly. There is a correlation between growth and employment. Employment may follow growth going forward.’
As the South African government has admitted that poverty and unemployment can only be combated with a growth rate of over five per cent, many economists are now of the opinion that the Reserve Bank of South Africa will be forced to cut rates in the near future.
Current South African (ZAR) Exchange Rates:
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The South African Rand/US Dollar Exchange Rate is currently in the region of: 0.1017 <
The South African Rand/Euro Exchange Rate is currently in the region of: 0.0793 <
The South African Rand/Pound Sterling Exchange Rate is currently in the region of: 0.0677 <
The South African Rand/Australian Dollar Exchange Rate is currently in the region of: 0.1067 <
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.8957 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.8044 >
The Euro/South African Rand Exchange Rate is currently in the region of: 12.6340 >
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.3814 >
(Correct as of 09:45 am GMT)
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