Rand Report | South African Ra

Rand Report | South African Rand Outlook is Uncertain

Last Thursday saw thin market conditions due to the US enjoying Independence Day. Liquidity returned on Friday although thoughts on the likelihood of the market going back to normal were uncertain due to traders taking long weekends.

Rand Report | South African Ra

ZAR08072013

Last Thursday saw thin market conditions due to the US enjoying Independence Day. Liquidity returned on Friday although thoughts on the likelihood of the market going back to normal were uncertain due to traders taking long weekends.

European Central Bank’s (ECB) forward guidance in their decision to keep rates low for extended periods of time contributed to an interesting trading period last week.  This decision to keep rates low has made them in closer alignment to the Federal Reserve strategy. The USD seems to be rallying to a three-year high at this point.

The Rand strengthened against the British pound on Friday to close at a high of 15.17 ZAR/GBP. This is an unexpected rally compared to the close of play on Thursday at 15.46 ZAR/GBP. The Pound is still trading lower this morning but it remains to be seen if it will return to its former strength against the Rand.

On Wednesday we will see the German Consumer Price Index released, this will be one of the primary gauges of Euro-zone inflation.  Germany is the largest economy in the Euro-zone and can affect the rate of inflation for the entire Euro-zone region. A rise in inflation could cause the ECB to raise interest rates which is likely to strengthen the Euro. South Africa and Europe are close trading partners and therefore a change in the Euro could create a significant change for the Rand.

GBP / ZAR: 15.323

EUR / ZAR: 13.198

USD / ZAR: 10.295

NZD / ZAR: 7.954

Exchange rates as of 7:52(GMT), 8 July 2013.

Composed by Courtneigh Humphriss

:: Note: The above exchange rates are based on “interbank” rates.
If you want to
transfer money to or from South Africa then please register/login on our website, or call us for a live dealing rate.

Make use of a Rate Notifier to send you alert when the South African exchange rate reaches levels you are looking for.

43030_Imm_Safrican_ad_2011.indd

Read more:

Rand Report | The ZAR strengthens somewhat on US jobs data

Rand Report: ZAR firms up despite uncertainty

Rand Report: ZAR breaks four-year low