ZAR extends losses against the US dollar

The past few months certainly haven’t been kind to the rand, with the emerging-market currency tumbling 13.6% against the US dollar so far this quarter.

But it appears that the South African Reserve Bank (SARB) won’t be taking any sudden action to bolster the currency.

Yesterday SARB Deputy Governor Kuben Naidoo was quoted as saying: ‘If there is persistence in that currency weakness and it feeds into other prices, we would have to act. It’s not an immediate response, we will wait – because the economy is weak we can afford to wait and see. That may be a few months, maybe a few quarters’.

Today’s high-profile South African inflation report is the main news to focus on, with an unexpected result having the potential to spark yet more rand volatility.

Latest Rates

USD/ZAR 13.77
GBP/ZAR 18.10
EUR/ZAR 15.89
ZAR/JPY 8.01
CNY/ZAR 2.11
AUD/ZAR 10.11
CHF
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Brexit Bill:- Pound exchange rates volatile as UK government passes crucial bill

The pound fluctuated on Tuesday, as while the UK’s latest labour figures failed to impress markets, they were later relieved by the passing of the government’s latest Brexit bill.

Sterling appears to be on the defensive this morning, with GBP/EUR muted at €1.1365, GBP/USD edging down to $1.3349, while GBP/CAD and GBP/AUD holding steady at C$1.7403 and AU$1.7637 respectively. Only GBP/NZD is currently showing any real signs of movement as it tumbles to NZ$1.9039.

Looking to today the focus will be on the US dollar and the Federal Reserve as the bank looks set to implement its second rate hike of the year.

What’s been happening?

The pound struggled to advance once again on Tuesday as the currency found only limited support from some mixed employment figures.

The latest labour report revealed the UK workforce swelled by a further 146,000 workers in April, with the rise being welcomed by GBP investors as it drove domestic emplo
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Rand nears R13/$ and hits R20/£ despite claims it is stabilising…

The rand came within a few cents of the R13/$ level in the late afternoon on Tuesday as US housing data indicated a stronger US economy‚ further supporting the case for a rate hike in the world’s largest economy this year. The dollar gained against the euro in response to the data‚ which sent emerging […]
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South African Rand (ZAR) Is Heading For R22.50 Against The Dollar

A leading economist has painted a bleak picture for the local currency, the rand, against a surging US dollar. Cees Bruggemans, consultant economist at Bruggemans & Associates noted in a blog on his website that the rising dollar reached, on trade-weighted basis, a 20-yr low four years ago, but took three years to rise 6%, […]
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