Rand breaks through R10/$:D

[Confu3ed]

Yippee, hope it recovers soon 6.5 -7.00 is probably what it really should be at. I can't understand, the US and British Economies threaten to go into recession yet the rand drops
Shouldn't it be the other way around, shouldn't the rand get stronger?

http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-2385-2396_2426615

 

[iDenTiTy]

Well they will pull their investments back to try strengthen their economies, which means less dough for emerging markets (SA incl.)...

So it means they depreciate slower, and our economies worsen 'cos they taking their money back.

Yippee, hope it recovers soon 6.5 -7.00 is probably what it really should be at. I can't understand, the US and British Economies threaten to go into recession yet the rand drops
Shouldn't it be the other way around, shouldn't the rand get stronger?

http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-2385-2396_2426615

 

[.geek]

Yippee, hope it recovers soon 6.5 -7.00 is probably what it really should be at. I can't understand, the US and British Economies threaten to go into recession yet the rand drops
Shouldn't it be the other way around, shouldn't the rand get stronger?

http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-2385-2396_2426615

WTF are you so happy about?

 

[Tassidar]

WTF are you so happy about?

Cheaper to travel overseas, petrol prices and other goods cheaper.

 

[Tassidar]

Well they will pull their investments back to try strengthen their economies, which means less dough for emerging markets (SA incl.)...

So it means they depreciate slower, and our economies worsen 'cos they taking their money back.

That assumes that individuals act for the 'good' of a country which is highly unlikely.

Remember the old saying that when America sneezes the rest of the world catches flu. Essentially, in times of high risk emerging markets, rightly or wrongly are seen as more risky than developed economies.

 

[.geek]

Cheaper to travel overseas, petrol prices and other goods cheaper.

I must be missing something then.

 

[iDenTiTy]

That assumes that individuals act for the 'good' of a country which is highly unlikely.

Remember the old saying that when America sneezes the rest of the world catches flu. Essentially, in times of high risk emerging markets, rightly or wrongly are seen as more risky than developed economies.

What I was trying to say.

Thanks.

 

[swim]

wait until china sneezes we all get aids lol

 

[noxibox]

I can't understand, the US and British Economies threaten to go into recession yet the rand drops
Shouldn't it be the other way around, shouldn't the rand get stronger?

If your local investments are collapsing you're likely to move your money where you think it will be safest or you're just taking it back to cover your losses. It's not only the Rand that has taken a hit. Just off the top of my head so have the Australian and New Zealand Dollar and the Korean Kwon. Even the Pound has taken quite a hit versus the US Dollar.

 

[Arthur]

wait until china sneezes we all get aids lol

No, China gets AIDS when the USA sneezes. China's economy is about a quarter of the size of the USA's, with four times the population. China is very much more dependent on exports than the USA.