The Euro to South African Rand (EUR/ZAR) exchange rate rallied by around 1.03% on Friday afternoon.
After European economic data met with forecast figures on Friday, the common currency fluctuated versus its major peers. A general declination, however, can be attributed to ongoing geopolitical concerns regarding Greece and its ability to repay creditors.
The South African Rand, meanwhile, dived versus the majority of its most traded currency competitors as a result of continued issues with the country’s foremost energy provider, Eskom. Additional losses can be attributed to a steadily rising US Dollar.
The Euro to South African Rand (EUR/ZAR) exchange rate is currently trending in the region of 12.9592.
Euro (EUR) Exchange Rate Fluctuates on Mixed Data
The shared currency fluctuated versus its major rivals on Friday after domestic data met with forecast figures. Eurozone Consumer Price Index equalled the median market forecast of -0.1% on the year in March. On the month, however, Eurozone CPI advanced from 0.6% to 1.1% in March. In addition, yearly Eurozone Core CPI met with the market consensus of 0.6%.
Although the data was positive, in that it equalled predictions, the common currency failed to make any significant gains. This is due to speculation that the Greek government will be unable to balance pleasing its people and its creditors, ultimately resulting in a Greek exit from the Eurozone.
The Euro to South African Rand (EUR/ZAR) exchange rate dropped to a low of 0.7167 today.
South African Rand (ZAR) Exchange Rate Dives on Eskom Woes
With the US Dollar edging higher after core inflation picked up, emerging market currencies softened. The major contributing factor to the Rand’s downtrend, however, is continued issues with Eskom. For the sixth consecutive day South Africa’s leading energy provider has used a mixture of load shedding and rolling black-outs.
‘Any additional changes on the already vulnerable and constrained power system could lead to a change in the stage of load shedding at short notice,’ stated an Eskom representative. ‘Several units are currently out of service due to planned and unplanned outages.’
Euro to South African Rand (EUR/ZAR) Exchange Rate Forecast to Hold Gains
Although the situation in Greece is showing no sign of abating, and with increased speculation that Athens will fail to meet the Eurogroup requirements by the April 24th deadline, the Euro to South African Rand (EUR/ZAR) exchange rate is likely to hold gains for the remainder of Friday’s European session. With that being said, however, there could be a EUR/ZAR reversal over the weekend if the US Dollar resumes declination and if Eskom can end their long run of load-shedding.
The Euro to South African Rand (EUR/ZAR) exchange rate climbed to a high of 12.9828 today.