South African Rand to US Dollar (ZAR/USD) Exchange Rate – Rand softens from highs on CPI inflation data

The South African Rand slipped from its seven-week high against the US Dollar on Wednesday after consumer inflation data came in weaker-than-expected.

According o Statistics South Africa the consumer Price Index (CPI) used to measure inflation, rose to 5.5% on a year by year basis in June, down from the rise of 5.6% recorded in May. Economists had been expecting the inflation rate to come in at 5.7% on a year by year basis. On a month by month basis the CPI increased by 0.3% in June, an improvement on the -0.3% seen in May.

The Rand had been boosted against the ‘Greenback’ after weaker data out of the United States increased speculation that the Federal Reserve will not begin to taper its quantitative easing program anytime soon.

The currency remains vulnerable with the South African Central Bank painting a grim picture of the nation’s growth prospects. Labour volatility, the weak Rand, steep wage increases and high prices could all put the brakes on growth.

“The South African manufacturing sector encountered a number of headwinds of which industrial action, energy constraints and fierce competition from more competitive Asian producers, are only a few, “Given the current volatile labour relations environment, inflation pressures emanating from high unit labour costs could increase should wage increases continue to exceed consumer price inflation without a concomitant rise in productivity, the Bank’s annual economic report said.

Current South African (ZAR) Exchange Rates

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The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.6737 <

The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.8671 <

The Euro/South African Rand Exchange Rate is currently in the region of: 12.8051 <

The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 8.9048<

The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.6907 <

The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.3865 <

(Correct as of 10:35 am GMT)