Pound to Rand Exchange Rate Softer Today as Chinese data supports emerging market currencies

October 21, 2014 - Written by Frank Davies

STORY LINK Pound to Rand Exchange Rate Softer Today as Chinese data supports emerging market currencies

The SA Rand to Pound exchange rate (ZAR/GBP) advanced again today as positive economic data out of China buoyed demand for riskier emerging market assets.

A positive domestic report also supported the currency.

The current conversion rates ar as follows:

The Pound to Rand exchange rate is -0.11 pct lower with a conversion rate of 1 GBP equals 17.80424 ZAR.
The Euro to Rand exchange rate today is converting -0.5 per cent lower at 14.04558 EUR/ZAR.
The US Dollar to Rand rate is converting +0.12 per cent higher today at 11.04677 USD/ZAR.

Don't forget if you are waiting to find better exchange rates for a currency transfer, then you're best bet is to set up your future rate order with a foreign exchange broker!

Rand Rate Today: ZAR Finds Support in Chinese Data

Industrial Production in China grew more than forecast in September, easing some of the concerns for commodity-based currencies.

According to Official data, industrial production rose at an annualised rate of 8.0%, beating expectations for a figure of 7.5% rise, and a sharp rise from the 6.9% gain recorded in the preceding month.

As China is a major importer of commodities, the South African Rand found support from the data.

The nation is a major provider of metals and other material to China’s industrial sector, which is the world’s biggest.

A separate Chinese GDP report created a mixed reaction as some economists deemed the figures as a positive whilst others saw it as a negative.

The positive angle was that the data could have been a lot worse whilst the negative side says that economic growth has slowed to its weakest pace since the height of the global financial crisis in 2009. Those worries weighed upon the US Dollar and allowed the Rand to push higher as a result.

‘Today has seen a minor push back into risky assets with local government bonds the recipient of some investment capital and this filtered through into a rather blasé Rand market,’ said Standard Bank trader Inshaan Omar.

The South African Rand (ZAR) also found support after the South African Central Banks leading business cycle indicator increased to 0.8% on a month on month basis in August.

The increase in the measure was due to an increase in the number of residential building plans approved and a higher volume in manufacturing orders. The indicator collates data such as vehicle sales, job advertisements, business confidence and money supply to gauge the economic outlook.

Sterling meanwhile came under pressure after a report showed that government borrowing rose to £11.8 billion last month. The figure was higher by £1.6 billion than the same month last year.

Traders of the Rand will want to watch Wednesday’s South African Inflation rate data. Economists are forecasting that the nation’s inflation rate will fall from 6.4% to 6.1% in September. Regarding the Pound, the latest Bank of England policy meeting minutes will likely create some volatility for the currency.

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