The South African Rand has remained relatively steady against the US Dollar but investors are currently jittery ahead of the release of the latest US jobs data and ongoing concerns over the nation’s mining sector is also hanging heavily over the currency.
At the current exchange rate 1 Pound will purchase 15.0500 South African Rand
Previously the Rand was supported after risk demand increased due to the European Central Bank saying that it would leave interest rates at a record for the foreseeable future. An easing of tensions in Egypt also supported commodity and emerging currencies. Today however, fears are mounting that the United States Federal Reserve could withdraw its bond-buying stimulus measures soon if the jobs data is strong. The speculation has put emerging markets under increasing pressure as investors are likely to withdraw their cash or slow their investments.
“Today’s US payrolls number will determine whether improved risk appetite is sustained into the weekend,” Mike Keenan, a forex strategist for Absa Capital, said in a note.
A positive US jobs number will reinforce expectations that the Fed tapers its stimulus early.
“The release could set the tone for the Rand for the coming weeks, given that it has become more dependent upon offshore developments,” Keenan added.
A better-than-expected payrolls figure is likely to keep the Rand weaker above the key R10 level. A disappointing outcome could potentially see the Rand make a recovery to the R9.90 region over the next few days.
A major point of volatility continues to be the country’s tumultuous mining sector. Further workers strikes are possible next week as wage talks draw nearer.
Current South African (ZAR) Exchange Rates
< Down > Up
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.0473 >
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.0500 <
The Euro/South African Rand Exchange Rate is currently in the region of: 12.9338
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8673 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.5347 <
(Correct as of 11:40 am GMT)
Comments are closed.