The Euro to Rand exchange rate has been near its best since September 2016 today, following a Rand-damaging political development.
- EUR ZAR rate climbs to 15.8275 – ZAR EUR rate falls to 0.0631
- Euro appreciates despite French incident – Vehicle attack rattles traders
- Rand tumbles as Zuma survives no-confidence vote – Secret ballot fails to oust President
- Higher German inflation could boost Euro on Friday – Rand losses may extend on confidence score
The Euro has risen by 0.8% against the South African Rand today, following disappointment in the South African Parliament.
French Car Attack Fails to Dent Positive EUR ZAR Exchange Rate
Domestic news from the Eurozone has been negative today, focusing on a possible terror incident near Paris.
A vehicle has been used to attack a group of soldiers, injuring six. Authorities have called this a deliberate attack, and are searching for the vehicle and its driver.
While a relatively minor incident compared to the attacks in late 2015 and 2016, this event has still raised concerns about a possible new wave of terrorism in Europe.
In spite of this background information, the Euro has still sustained an advance against the far-weaker South African Rand.
South African Rand Slides after President Zuma Survives Secret Vote
In yet another show of his political longevity, South African President Jacob Zuma has remained in office, having seen off the latest vote of no confidence.
This continuation of the status quo has triggered a Rand to Euro slump, down to an exchange rate of 0.0633. The Rand initially spiked up to a rate of 0.0645 when voting commenced, but lost all momentum when Zuma’s victory was announced.
In a distinction from previous votes, this latest effort was conducted in secret; some predicted that this could lead to Zuma being ousted due to the afforded anonymity.
Hopes of seeing Zuma removed from office were dashed, however, when it was revealed that 177 MPs had voted against Zuma but 198 had supported him.
This disappointing result made it the fourth vote of no confidence Zuma has survived, as well other motions which failed to make it to the ballot box.
Reflecting on the result was United Democratic Movement (UDM) leader, Bantu Holomisa. One of Zuma’s key rivals, Holomisa stated of the ballot that Zuma’s African National Congress (ANC) had not behaved as expected;
‘The safety net was there because nobody would have seen who voted [for] who but [the ANC] didn’t make use of that opportunity. It’s clear that some of them are still obsessed in protecting this questionable character’.
Euro to Rand Forecast: EUR ZAR Rally Possible on German Inflation Rate Stats
Rounding off this week’s Eurozone announcements will be Friday’s German inflation rate figures for July.
The finalised stats are predicted to show a rise, both on the month and the year. Such results could trigger a late-week Euro advance against the Rand.
With the week’s biggest South African event now over and done with, the Rand could still be influenced by Thursday’s mining data and Friday’s consumer confidence score.
National mining production is forecast to rise, but a slump in manufacturing is also anticipated.
If the Q3 consumer confidence reading drops as predicted, the Rand could end weekly trading in a poor position against the Euro.
Current Interbank EUR ZAR Exchange Rates
At the time of writing, the Euro to Rand (EUR ZAR) exchange rate was trading at 15.8191 and the Rand to Euro (ZAR EUR) exchange rate was trading at 0.0633.