The Euro to South African Rand (EUR/ZAR) exchange rate is trending close to a weekly high on Thursday afternoon.
Despite the fact that the recent meeting of European government officials failed to resolve Greece’s debt crisis in a way that benefits all parties involved, optimism that further meetings will find a resolution has allowed the Euro to strengthen versus many of its major peers.
The South African Rand, meanwhile, edged higher versus many of its most traded rivals thanks to mixed domestic data. The single currency surge also saw increased support for the South African asset.
The Euro to South African Rand (EUR/ZAR) exchange rate is currently trending in the region of 13.3625.
Euro (EUR) Exchange Rate Strengthens on Eurogroup Meeting
As explained above, the recent discussion between European Finance Ministers regarding the Greek debt situation did not find a resolution. However, as it was only the first such meeting and many of the officials felt optimistic about future proceedings, the Euro gained versus the majority of its most traded currency competitors.
‘We had a very fruitful and at times frank discussion,’ Italian Finance Minister Pier Carlo Padoan said. ‘I am optimistic as there is a will to go ahead.’
However not everyone was entirely confident. Jeroen Dijsselbloem, the Dutch finance minister who chairs these meetings said; ‘We covered a lot of ground but didn’t actually reach a joint conclusion on how to take the next steps. There has to be a political agreement on the way forward.’
The Euro to South African Rand (EUR/ZAR) exchange rate dropped to a low today of 13.3310.
South African Rand (ZAR) Exchange Rate Fluctuates on Mixed Data
Although the Rand advanced as it tracks the Euro surge, mixed data has seen South Africa’s asset fluctuate against its major peers. Year-on-year Mining Production declined beyond expectations from -0.1% to -2.0%. However, monthly Mining Production increased from -1.2% to 0.9% in December.
In a flash note published on Thursday, Nedbank’s Economic Unit said: ‘Production is likely to remain depressed in the coming months as a slowdown in global growth feeds into lower commodity prices and as local infrastructure constraints – especially concerning electricity supply – keep output relatively weak.’
Euro to South African Rand (EUR/ZAR) Exchange Rate Forecast to Hold near Weekly High
Given the lack of domestic data to provoke changes, the Euro to South African Rand (EUR/CHF) exchange rate is likely to hold in its current position.
With that being said, a softer US Dollar may see emerging market asset strengthen, so the Rand has potential to recover some of its losses over the coming days.
The Euro to South African Rand (EUR/ZAR) exchange rate climbed to a high of 13.4352.