Sterling has posted some significant gains against the so called higher risk currencies in the past two days with the pound reaching a near 4 month high against the Australian Dollar and New Zealand Dollar and a one year high against the South African Rand (ZAR)
Moves against the AUD and NZD, which loosely track each other, came following poor inflation figures in Australia yesterday
reducing the chances of an interest rate hike by the Reserve Bank of Australia and causing a sell off for both currencies.
Of the three currencies the ZAR in particular has seen the most significant fall with it having now lost just shy of 4.5% since Wednesday, pushing GBP/ZAR up massively.
Finance Minister Malusi Gigaba painted a bleak picture of the state of the country’s finances in his first mid-term budget on Wednesday, with growth and revenue set to fall well short of projections made in February. This has heightened risk for further credit rating downgrades and confidence in the Rand has significantly fallen.
These moves could be short term and anyone buying these currencies you may wish to take advantage. By using a specialist foreign exchange broker this ensures you get the best deal for your currency. We will also help with the timing of your transfer by giving you as much market information as possible, something the banks will often not provide. For more information or to get a free quote please click here.