The South African Rand exchange rate plummeted to a historic low against the Pound and tumbled to its weakest recorded levels against the US Dollar as South Africa’s Finance Minister was removed from his role without explanation.
Good news, however, for those investors interested in trading the GBP/ZAR, as the pair is now at the best conversion seen in years.
The official’s surprise departure put the Rand under extreme pressure for the second half of the week, prompting this response from analysts with Capital Economics;
The sell-off in South African markets on Thursday was probably a sign of things to come. That added to a sharp sell-off of the Rand to […] its weakest ever level against the US Dollar.
Whether the Rand has further to fall remains to be seen.
Pound Sterling Currency News: GBP Rises against Swedish Krona (SEK) and South African Rand (ZAR) Today ahead of Vital Bank of England (BoE) Interest Rate Decision
The Pound Sterling exchange rates have been decidedly mixed so far today, with the Pound seeing sizable advances against the Swedish Krona and South African Rand but slumping decisively against the Norwegian Krone.
Although outside factors have pushed up the exchange rate of the latter currency, the Pound’s indecisive movement is mainly due to the concerns of economists over the impending Bank of England (BoE) Interest Rate Decision.
As of writing, a majority of economists had concluded that the BoE will not be raising the UK interest rate today, but the release of the BoE’s minutes regarding the decision is likely to trigger major movement.
Latest Pound / Krona / Krone / Rand Exchange Rates Today
On Thursday the Swedish Krona to British Pound exchange rate (SEK/GBP) converts at 0.074
At time of writing the pound to swedish krona exchange rate is quoted at 13.561.
The pound conversion rate (against norwegian krone) is quoted at 13.697 NOK/GBP.
The GBP to ZAR exchange rate converts at 23.966 today.
At time of writing the pound to swiss franc exchange rate is quoted at 1.14.
NB: the forex rates mentioned above, revised as of 25th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.The division of Monetary Policy Committee (MPC) members on the vote will be key, with any additions to recurrent hawk Ian McCafferty being likely to raise the Pound’s appeal.
Other UK data out today has included the widening UK Trade Balance Deficit for October and the better-than-expected outcome of the RICS House Price Balance for November.
Swedish Krona (SEK) to Pound Sterling (GBP) Exchange Rate Declines Heavily Today after National Inflation Decreases
The Swedish Krona has fared poorly against the Pound Sterling today, with the only recent Swedish economic publications being the likely culprit for this downtrend.
Although the national annual Inflation Rate for November has reprinted at 0.1%, the monthly result has been less supportive and fallen from 0.1% to -0.2%.
This comes as the only Swedish economic release of the week to speak of, which has only amplified the effects had by the announcement.
In the future, the Krona is likely to be moved by the Riksbank Interest Rate Decision, which is due on Tuesday next week. As of writing, forecasts are for no change from the current rate of -0.35%.
Norwegian Krone (NOK) Exchange Rates Advance as Inflation Rate Figures Assist Krone Today
The Norwegian Krone has been performing well today; this comes as something of a contrast given the mostly negative domestic data that has been released today.
The release of the November Inflation Rate results have raised the appeal of the Krone today, with advances from 2.5% to 2.8% taking place for the annual result.
Elsewhere, the price of crude oil per barrel has been thoroughly unsupportive for the Krone, with the price dropping to a perilously low $37.00 today.
The next Norwegian release in the future will be next Tuesday’s Balance of Trade figure for November, which was forecast to decline slightly at the time of writing.
South African Rand (ZAR) Exchange Rate Declines Today along with ZA Consumer Confidence
The South African Rand has been faring incredibly poorly today, with the currency dropping in appeal heavily after a pair of detrimental events took place.
The first was the announcement of the South African Consumer Confidence score for the fourth quarter. Forecasts were for a drop from -5 points to -10.79, but the worse reality was a -14 point figure.
The other factor has been the falling price of gold per 100 ounces, which has hit $1074 today.
Future South African economic releases include next Thursday’s PPI results for November, which are expected to rise from 4.2% to 4.55% on the year.
The ongoing commodity crisis has seriously shaken investor confidence in the Rand, but the future may hold worse in store.
According to Investment Solution Chief Economist Lesiba Mothata:
‘The large current account deficit (about 4% of GDP), which has not responded to the sustained Rand depreciation, combined with the deteriorating fiscal outlook, has left South Africa vulnerable.’