Pound Sterling Hits Best Ever Exchange Rate vs the South African Rand; British Pound Lower against Euro
The British Pound exchange rate experienced mixed fortunes on Black Monday, with the asset tumbling against the Euro (EUR) and gaining against the commodity bloc.
The GBP/EUR exchange rate fell to a three-month low while the GBP/NZD exchange rate hit a six-year high and the GBP/CAD exchange rate surged to an eight-year high. The Pound also recorded notable gains against the Rand. However, with Asian markets regaining stability overnight, the Pound may reverse some of its moves.
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The British Pound to Rand has recently hit a succession of highs, with the GBP/ZAR pairing strengthening beyond 20 Rand per Pound to achieve its best levels on record.
The Rand has also weakened to record lows against the US Dollar as the situation in China and bets that commodity prices will remain pressured for the foreseeable future saw investors pull away from emerging-market and commodity-driven currencies.
A quick foreign exchange market summary before we bring you the rest of the report:
On Tuesday the Norwegian Krone to British Pound exchange rate (NOK/GBP) converts at 0.073
Today finds the pound to norwegian krone spot exchange rate priced at 13.656.
At time of writing the pound to swedish krona exchange rate is quoted at 13.586.
The live inter-bank GBP-ZAR spot rate is quoted as 23.168 today.
The live inter-bank GBP-DKK spot rate is quoted as 8.69 today.
Please note: the FX rates above, updated 7th May 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
In the view of industry expert Nizam Idris, the Rand is one of the ‘commodity-linked, high yielding currencies where a lot of foreign funds were parked. A lot of these flows are being reversed right now. Lower Chinese growth means weaker demand for commodities as they are the world’s largest consumer of raw materials by far.’
However, while the Pound was trending strongly against the Rand, it failed to perform so well against the Euro and the GBP/EUR exchange rate slid to a two-month low.
Pound Sterling Outlook: GBP Down against NOK, SEK, DKK Today
As well as falling against the Euro, the Pound was trending in a weaker position against several of its other most-traded currency counterparts. The British Pound to Norwegian Krone exchange rate fell 0.2% on the day while the GBP/SEK exchange rate lost -0.8% and the Pound Sterling to Danish Krone exchange rate slid 0.6%
The GBP/DKK exchange rate hit a low of 10.1690
Chancellor of the Exchequer Cautious about China Impact on UK, Pound Sterling Softens
The Pound’s mixed performance was at least partially due to comments issued by UK Chancellor of the Exchequer George Osborne.
The GBP/NOK exchange rate drifted to a low of 12.7590
The British official warned that the situation in Chinese markets could have a knock on effect and weigh on the UK’s economic outlook as ‘Britain is a very open economy, probably the most open of the largest economies’.
Exchange Rate Newsflash: Pound Sterling to Swedish Krona trades in the region of 13.0116
This Week’s Conversion Rate Predictions for GBP to ZAR, SEK, DKK, NOK
South African data likely to impact GBP/ZAR exchange rate trading includes the nation’s Mining Production figures for June and second quarter growth numbers. South Africa’s Producer Price Index is also scheduled for publication on Thursday.
Meanwhile, investors with an interest in the GBP/SEK pairing will be focusing on Sweden’s Producer Price Index, Consumer Confidence number, Business Confidence figure, balance of trade data and retail sales ecostat.
Danish news is limited this week, with only Friday’s domestic Business Confidence index due out, so UK news and global developments will be having a more notable impact on the GBP/DKK pairing’s performance.
In terms of Norwegian figures, the big ones are June’s unemployment rate (out on Wednesday) and Friday’s monthly and annual retail sales data for July.
While all these reports will have an impact on the GBP to NOK, SEK, ZAR and DKK exchange rates, the UK’s own ecostats will also be in focus. If the British data, including Friday’s confidence and growth numbers, support the argument in favour of higher UK borrowing costs the Pound could gain on the Norwegian Krone, Swedish Krona, South African Rand and Danish Krone.