Rand resumes slide to fresh lo

Rand resumes slide to fresh lows

The South African Rand fell to historic lows against the Pound last week, hitting 21.45 on Thursday, the worst rate in over 10 years. Following hawkish statements from various Fed officials with regard to raising US interest rates this year, the Rand also reached record lows against the US Dollar.

Rand resumes slide to fresh lo

As in recent times, all emerging market currencies have come under pressure. There has been negative feedback between lower commodity prices, concerns about the global growth outlook, deterioration in investor sentiment, weak domestic growth and political challenges.

The Rand’s only real economic results came on Wednesday with the South African Reserve Bank holding steady on interest rates at 6% and the nation’s various measures of inflation all showing declines, partly due to the fall in petrol price.

The Rand is currently trading at 21.08 against the Pound, and 13.88 against the US Dollar, having recovered some of the lost ground on Friday last week.

What to look out for this week? The South African Q2 Unemployment figures are released this morning, with any improvement in the labor market a bullish sign for the Rand. On Wednesday, we have the credit and money supply figures and on Thursday new car sales numbers. However, as in past months and years, the Rand will remain mostly sensitive to global macro-economic conditions, with economic data and statements from the US and UK dominating rate moves.

1st contact