Pound Sterling to Rand Exchange Rate Fluctuates after BoE Minutes
As a new week of trading got underway, and with British ecostats limited, the Pound was putting on a mixed performance against its rivals including the South Africa Rand.
A quick foreign exchange market summary before we bring you the rest of the report:
On Thursday 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 13.713.
At time of writing the pound to swedish krona exchange rate is quoted at 13.591.
At time of writing the pound to south african rand exchange rate is quoted at 23.816.
The pound conversion rate (against danish krone) is quoted at 8.707 DKK/GBP.
Please note: the FX rates above, updated 25th Apr 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.
Sterling was up against the Norwegian Krone but trending lower against the Swedish Krona, Danish Krone and South African Rand.
Last week the Pound softened against a number of its currency counterparts in response to dovish minutes from the Bank of England’s (BoE) latest policy meeting. As the minutes suggested that the BoE is in no rush to introduce higher borrowing costs, the Pound fell against a number of its peers after they were published.
Currency strategist Richard Cochinos commented; ‘We would expect some Sterling weakness in the short term, but the effects of the minutes should be limited. Sterling will be increasingly sensitive to inflation surprises, but we retain our medium term view of the Euro heading lower against the Pound in October.’
FX News Now: Oil Prices Climb but Norwegian Krone Exchange Rate Still Falls
Although UK news was in short supply and oil prices were continuing their recent uptrend, the Pound Sterling to Norwegian Krone exchange rate was still able to climb slightly during the European session.
However, with oil prices expected to climb further in the months ahead, the Pound may falter against the Krone before too long. Qatar’s Energy Minister recently added to the positive sentiment surrounding oil prices by stating that prices have bottomed out, making a recovery in 2016 likely.
Minister Mohammed Al Sada stated that the ‘Call on OPEC oil is expected to become healthier [and current low prices have] caused oil companies to reduce their capital expenditure by almost 20% this year from $650 billion in 2014. This trend of reducing investment in the oil industry could result in production shortfalls down the line.’
The GBP/NOK exchange rate hit a high of 12.4154South African Rand Predictions: Fed Rate Bets to Drive ZAR Trading
The Rand was able to gain on the Pound and maintain a stronger positon against the US Dollar on Monday as reduced Federal Reserve interest rate hike expectations lent the higher-risk currency support.
However, some investors have cautioned that the bombing in Turkey could limit demand for emerging-market assets and put the Rand under pressure.
Trader Warrick Butler noted; ‘A weekly close below 13.1700 for Dollar/Rand could see a deeper correction to 12.95 and even 12.70. Already this morning the Lira has suffered from risk aversion, losing well over 1 percent against the Dollar from Friday’s close. This could plague the Rand.’
The GBP/ZAR exchange rate achieved a high of 20.5010Pound to Norwegian Krone, Danish Krone, Swedish Krona and South African Rand Volatility Forecast Following UK CPI
The Pound edged slightly lower against both the Swedish Krona and Danish Krone on Monday but the GBP to NOK, SEK, DKK and ZAR exchange rates could gain on Tuesday if the UK’s inflation data delivers a positive surprise.
The rate of annual inflation came in at 0.0% in August. It would take a figure of 0.1% or higher to give Sterling a substantial boost against its major peers. A stronger-than-forecast increase in the core inflation rate would also be Pound-positive. As it stands the core measure of consumer price gains is expected to rise from 1.0% to 1.1%.
UK CPI Sees GBP Rate Fall Today
Instead of gaining off the back of surprisingly strong inflation, the Pound fell against its currency counterparts after UK CPI entered negative territory. The -0.1% annual reading disappointed economists expectations and left Sterling struggling.