Rand hits 13 month high vs $

sandmanm34 said:
Dollar is weak rather than the rand being strong so I'm not sure the World cup has any bearing...
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The WC has lots of bearing for speculators. What currency do you think everyone will be purchasing in the upcoming months and during the WC as hotels are booked and foreigners arrive in SA? Surely not the Mexican Peso.
 
Guys guys guys guys.... slow down a bit :p

The Rand will climb due to the world cup as it gets closer. The demand for Rands will be more so the price will increase. He's not completely wrong ;)
 
haha.. indeed..
Why would the Rand Plummet?

The only reason the dollar is getting killed is because of the Feds operating the printing press, and all the bad economic news coming out of the states. The dollar is weakening and the Euro/Yen carry trade which is now the cause of the rally in the equity markets.

The Rand will maintain its strength since our government has maintained a reasonably strong economy and made no stupid decisions which it is now trying to bailout with the printing press.

I see no evidence for Rand to plummet and as we are going forward we will see the Rand Strengthen even further over the next few months to probably R6-6.50 to the dollar.

This dollar weakness is going to cause a currency crisis for the United States over the next year when people lose faith and begin dumping it.
 
PeterCH said:
The WC has lots of bearing for speculators. What currency do you think everyone will be purchasing in the upcoming months and during the WC as hotels are booked and foreigners arrive in SA? Surely not the Mexican Peso.
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So you are saying the strength of the rand has nothing to do with the weak dollar and it is all about the world cup?

DJ where you at dude!!!!!!!!
 
Is it not true that when the Rand is strong the exporters cry and want the Reserve Bank to help weaken it.....when the Rand weakens we cry. What do you guys think is better? Strong or weak Rand? I have always wondered about this.
 
ocleroux said:
Is it not true that when the Rand is strong the exporters cry and want the Reserve Bank to help weaken it.....when the Rand weakens we cry. What do you guys think is better? Strong or weak Rand? I have always wondered about this.
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the reserve bank said they wont weaken it.
 
We need a mixture of both i think, the rand below 7 is not good for exports. As far as i know you should export more than you import and a strong rand will mean less exports which is bad. So i think if it hovers at 7-7.50 it is good for the entire country, drop below 7 and maybe the exporting will take a big hit.

This is of course my understanding and may be very flawed :D
 
And I agree with that. I have always thought a stronger Rand is better...but is this the case? If our exporters lose business because of the stronger rand then wont the whole economy suffer because of that?
 
OK...just out of curiousity....how then does a country like the UK maintain such a strong economy with such a strong currency? Or is it that their economy is perhaps not so much based on export?
 
Yup exporting is very important. As i said you need to export more than import or the economy will run into trouble.

Again i stand to be corrected :D, well now that is a great question :D, awaits the answer.
 
ocleroux said:
OK...just out of curiousity....how then does a country like the UK maintain such a strong economy with such a strong currency? Or is it that their economy is perhaps not so much based on export?
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mostly service/finance
 
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