Despite the South African rand becoming this year's best performing emerging-market currency, it may fall more than 11% against the dollar this quarter as the nation struggles with its reliance on foreign capital. The decrease will take place because of a global market equity correction that will reverse inflows of capital needed to fund the nation's current account deficit.
Foreign purchases of South African assets are likely to fall short of the amount required to fund the deficit gap as the best of the rand has most likely already been seen this year. The rallying of the rand throughout the year will most likely reverse as signs of a prolonged global recession increase, sparking a sell off in equities worldwide.
The rand's poor outlook has its currency exchange rates at GBP0.0769 and EUR0.0895
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Rising consumer confidence in the UK and a hike to 2014 GDP forecast by the BCC earlier this week...
|South African Rand||17.699|
|GBP indicative mid-market rate at 21:00. Please call for quote.|