Currency News

Daily Exchange Rate Forecasts & Currency News

Pound to South African Rand Outlook: GBP/ZAR Exchange Rate Advances

February 10, 2015 - Written by Ben Hughes

Latest Pound Sterling to Rand Exchange Rate Forecast and GBP/ZAR Analysis Today



The Pound to Rand exchange rate made solid gains on Tuesday despite economic data out of Africa’s most advanced economy beating economist expectations.

Instead, the Rand was weakened by a fall in risk sentiment, as investors grew increasingly concerned over the conflict in Ukraine and the debt negotiations.

Economic data released by Statistics South Africa showed that the nation’s unemployment rate fell to 24.3% in the fourth quarter of 2014, the lowest level seen since the final quarter of 2013 and was an improvement from the 25.4% figure recorded in the preceding quarter. The figure now means that there are now 4.9 million people looking for work rather than the 5.1 million previously.

Most of the jobs created were in the construction, agriculture and trade sectors. Utilities, mining, and community and social services shed a combined 41,000 jobs between the third and fourth quarters of last year.

Stats SA deputy director-general for social statistics Kefiloe Masiteng cautioned that some of the jobs created were driven by the seasonality associated with the festive season as evidenced in the sectors that created mainly "casual" jobs.

The separate manufacturing production report showed that production increased by 1.1% in December compared to the same time in the preceding year. The figure was an improvement on the -1.9% figure recorded in November. The sector faced many challenges last year as it was rocked by workers strikes, weak foreign demand and power supply disruptions.

On a month on month basis, factory output increased by 2.3% and was up by 2.5% in the three months to December compared with the preceding three months.

Advertisement
Despite the positive data, the Rand fell sharply against most of its major peers as volatility increased. Demand for riskier assets fell as Greece and its international creditors increased their efforts to reach an agreement on the nation’s funding.

‘This Greek crisis is adding quite a lot of nervousness into the market. The market was hoping there would be more movement toward some agreement than we’ve seen so far because the timescale is very tight’ said Jonathan Webb, head of foreign exchange strategy at Jefferies International Ltd.

The volatility was also increased by news that pro-Russian rebels intensified their assault on a strategically important transport hub and the Ukrainian military launched an offensive near the city of Mariupol. Economists are nervous over suggestions that the USA could provide weapons to Kiev, as such a move would surely escalate the conflict.

Rand Exchange Rates Today



The Pound to South African Rand rate is +1.12 pct higher at 17.82145 GBP/ZAR.
The Rand to Australian Dollar conversion rate is -0.53 pct lower at 0.11015 ZAR/AUD.
The Rand to Euro exchange rate is -0.76 pct lower with a conversion rate of 1 ZAR equals 0.07565 EUR.
The Rand to Pound Sterling exchange rate converts -1.11 per cent lower at 1 ZAR is 0.05611 GBP.
The Rand to US Dollar conversion rate is -0.83 pct lower at 0.08560 ZAR/USD.
Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


TAGS: Currency Predictions Daily Currency Updates Poun Forecasts

Comments are currrently disabled