Rand goes below R13.30 to the US dollar

ngwe23

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May 12, 2011
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Now that whiney mcfeels is gone, why have we dropped to 13.50?

I am no economist (by even they cant fully explain these things 90% of the time) but there are several factors.
  • US signalling that they will not raise interest rates just yet
  • Brexit, althought i cannot figure out how a weak UK economy help us. It could be that they have low interest rates and their risk profile has inceased since Brexit so some of thier capital come our way because of our high interst rates.
  • Elections demonstated that SA is an iherently stable country politically
  • There has been a feeling for a while that the rand was under valued. part of this could be the normalisation in that direction
 

CorrieDeBeer

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Apr 14, 2015
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It is almost as if a good functioning democracy, improves the perception of a country to the rest of the world. I still feel we as South Africans do have things to be grateful for. I do remember the last time we had elections, the rand went up to like seven rand to the dollar for a while. It seems the elections have it in them to buy us a lot of good will in the 'overseas'.
 

Ho3n3r

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Apr 5, 2012
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I am no economist (by even they cant fully explain these things 90% of the time) but there are several factors.
  • US signalling that they will not raise interest rates just yet
  • Brexit, althought i cannot figure out how a weak UK economy help us. It could be that they have low interest rates and their risk profile has inceased since Brexit so some of thier capital come our way because of our high interst rates.
  • Elections demonstated that SA is an iherently stable country politically
  • There has been a feeling for a while that the rand was under valued. part of this could be the normalisation in that direction

I think he meant dropped, as in weakened, from 13.15 earlier in the week to 13.50 now.
 

saturnz

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May 3, 2005
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18,266
It is almost as if a good functioning democracy, improves the perception of a country to the rest of the world. I still feel we as South Africans do have things to be grateful for. I do remember the last time we had elections, the rand went up to like seven rand to the dollar for a while. It seems the elections have it in them to buy us a lot of good will in the 'overseas'.

the reason why it went to R7 had very little to do with our elections, the developed world was in the midst of financial crisis and saw emerging markets as good places to put their money

the current movements although to a certain extent has something to do with the local elections, most of the move is due to the how people perceive the value of the dollar
 

CorrieDeBeer

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Apr 14, 2015
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the reason why it went to R7 had very little to do with our elections, the developed world was in the midst of financial crisis and saw emerging markets as good places to put their money.

The elections may have convinced a lot of business people that this is the emerging market for them. I'm not saying it is the only factor, but still seeing millions of people exercise the civic duty like this breeds confidence.
 

saturnz

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May 3, 2005
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The elections may have convinced a lot of business people that this is the emerging market for them. I'm not saying it is the only factor, but still seeing millions of people exercise the civic duty like this breeds confidence.

business people don't invest in financial assets, they invest in green field operations. Market participants buy financial assets and market participants don't look at specific countries, they group them according to emerging markets, developing markets, regions etc

if you are actually looking at the dollar, you would have recognised this and realised most of the movement we see in the rand is as a result of whats happening in the dollar
 
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