April 13, 2017 - Written by Ben Hughes
STORY LINK GBP ZAR Exchange Rate Rallies after Protests Fail to Eject Zuma
The GBP ZAR exchange rate has begun to recover this morning after plummeting over the last 24 hours following mass protests South Africa’s capital Pretoria on Wednesday as protestors called on President Jacob Zuma to quit.
Pound South African Rand (GBP ZAR) Recovers after Mass Protests
The Pound South African Rand (GBP ZAR) exchange rate trended higher this morning following the end to yesterday’s 30,000 strong protest against President Zuma.
Protestors marched through the city of Pretoria on Wednesday calling for Zuma’s resignation after the dismissal of respected finance minister Pravin Gordhan in a cabinet reshuffle earlier this month.
The move lead to opposition parties to push for Zuma’s removal, which were rejected by the ruling African National Congress (ANC) party, stirring anger amongst many in South Africa as unemployment sits at near record levels, with the economy entering its sixth year of slowing growth.
The ultra-left Economic Freedom Fighters (EFF) and other opposition parties took to the streets with protestors yesterday, with many hoping that the ANC could finally be pressured to eject Zuma.
EFF leader Julius Malema said;
‘Let the message be clear today that Zuma is no longer a credible president of South Africa. We don’t care whether you are white, whether you are Indian, whether you are black, we are here to defend the future of our children.’
However sentiment in the South African Rand began to sour again this morning as the protest appeared to do little to change the ANC’s stance and with Zuma already having a history of beating various corruption charges and leadership challenges, observers cast doubts on the effectiveness of the protests to elicit change at the top of the ruling party.
Pound Strengthened by Fall in US Dollar
The Pound was strengthened this morning as traders looked for other safe currencies to invest in as they fled the US Dollar (USD).
The exodus was caused by comments from US President Donald Trump in an interview with the Wall Street Journal saying that he believed that the ‘dollar is getting too strong’ due to people’s confidence in his presidency.
Likewise investors were also spooked by his comments on the Federal Reserve’s current monetary policy saying;
‘I do like a low-interest rate policy, I must be honest with you.’
Markets were unsettled by the comments as the Fed was currently on track to implement at least two more rate hikes later this year, with some investors fearing that Trump’s comments could lead the central bank to adopt a more dovish approach.
GBP ZAR Exchange Rate Forecast: South African Consumer Confidence Ahead
The GBP ZAR exchange rate may rally further at the start of next week if South Africa’s first quarter Consumer Confidence drops due to the current chaos that has enveloped the political scene.
Meanwhile the Pound may find itself directionless for much of next week as a lack of data until Friday’s retail figures will give Sterling little momentum against the Rand.
Current Interbank Exchange Rates
At the time of writing the GBP/ZAR exchange rate was trending around 17.01 and the ZAR/GBP exchange rate was trending around 0.05.
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TAGS: South African Rand Forecasts