On Tuesday the Euro to South African Rand (EUR/ZAR) exchange rate was trading in the region of 13.1394 having fallen from the day’s high of 13.1743.
The Rand also staged a modest recovery against the US Dollar after sliding on Monday as a result of concerning domestic manufacturing data.
Last week the Rand posted losses against a number of its peers as South Africa recorded a larger-than anticipated trade deficit.
The Euro, meanwhile, fluctuated as the German government approved the Greek reform proposals, granting the Hellenic nation a four-month bailout extension in which to counter its current fiscal woes.
Concerns that the European Central Bank (ECB) might be struggling to source the bonds needed for its upcoming quantitative easing programme also had an impact on the common currency.
Over the five days, the Euro to South African Rand (EUR/ZAR) currency pair moved from highs of 13.2951 to lows of 12.8940.
The EUR/ZAR exchange rate advanced to 13.7658 on Monday after South Africa’s KAGISO Manufacturing PMI tumbled from 54.2 in January to 47.6 in February, sliding below the 50 mark separating growth from contraction.
Economists had anticipated an increase to 54.9.
A sharp drop in the business activity index and a dip in new sales orders accounted for the fall.
Unemployment and inflation figures for the Eurozone also printed above expected levels.
However, the Euro trimmed previous gains on Tuesday after an official from the European Commission asserted that Greece will require another bailout when its extension expires later this spring.
German retail sales data had little impact on the common currency, despite coming in considerably higher than forecast, and a steeper-than-projected decline in the Eurozone’s Producer Price Index (PPI) kept the common currency under pressure.
South African data is in short supply over the rest of the week, with just the nation’s Foreign Exchange Reserves figure still to come on Friday.
Movement in the EUR/ZAR currency pair is more likely to be inspired by Eurozone’s retail sales and GDP reports. Germany’s factory orders/industrial production numbers and the ECB’s interest decision will also have an impact on the direction taken by the Euro before the weekend.
As South Africa has strong trade links with China, the Asian nation’s Services/Composite PMI’s (due out tomorrow at 01:45 GMT) could help the Rand push higher if they show improvement.
During the European session the Euro to South African Rand (EUR/ZAR) exchange rate was trading in the region of 13.1451.