Rand hits 13 month high vs $

killadoob said:
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!!!!!!!!
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Not entirely but the Rand is being hyped up by the world cup. The weak dollar has nothing to do with a strong Rand - unless you look at a good Rand:Dollar exchange - the Dollar just happens to be weak and will be weak against all other currencies which are not pegged to it (eg Saudi Rhyals). The high gold price is also keeping the Rand strong - it's mostly two factors - upcoming WC and high gold price.

If two guys fight and one has flu - he may be weaker but that doesn't make the healthy one stronger than he was otherwise. He's only stronger relatively and I'm not referring to that.
 
PeterCH said:
Not entirely but the Rand is being hyped up by the world cup. The weak dollar has nothing to do with a strong Rand - unless you look at a good Rand:Dollar exchange - the Dollar just happens to be weak and will be weak against all other currencies which are not pegged to it (eg Saudi Rhyals). The high gold price is also keeping the Rand strong - it's mostly two factors - upcoming WC and high gold price.

If two guys fight and one has flu - he may be weaker but that doesn't make the healthy one stronger than he was otherwise. He's only stronger relatively and I'm not referring to that.
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have a look at the Brazilian Real, Mexican Peso, Turkish Lira, Polish Zloty, Hungarian Florint amongst others - these are EM currencies largely traded in the same basket as the rand. Same price action as the Rand.

Have a look at the Australian Dollar and New Zealand Dollar - commodity currencies (another feature of the Rand). Same price action as the Rand.

The World Cup is but a mere sprinkle (if any reason) as to the reason for a strong Rand.
 
A Strong Rand is better for the Consumer as it makes imports cheaper.

Weak Rand is better for exporters or earners of foreign currencies as they make for bigger profit margins.
 
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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The UK economy is very similar to the US economy, in that it was an investment hub.

Many wealthy people from around the world would park their investment capital in London's big banks and the pound, and this maintained a strong pound. It was proven how flawed this model was during the outset of the economic crisis with the pound losing a significant amount of value due to investors pulling their money out of the country.
 
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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What does the UK export?
 
milomak said:
have a look at the Brazilian Real, Mexican Peso, Turkish Lira, Polish Zloty, Hungarian Florint amongst others - these are EM currencies largely traded in the same basket as the rand. Same price action as the Rand.
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I bought something from merlin.pl the other day and the PLN is significantly less than before (against the Rand). Anecdotal, I know - but I still think the WC is hyping things up. There will be a significant fall after it. Unlike Poland, Hungary (EU, NATO, Eurozone accession in 2012 and very high education level and skill plus pos growth), Turkey (almost similar situation, ?EU accession), Brazil (oil) and Mexico (US on its border which stabilises it), SA has only the WC and gold going for it.
 
Peter why then has the rand in previous years been as low as 5.50 to the dollar with no world cup?

I do not buy this whole world cup thing. I think the dollar is weak and is making the rand look good :D.
 
So if I understand everything correctly.

Lets say 1$ = 1Rand it will only be expensive to live when the current prices for food/petrol ect ect stay the same. But when it goes down then it will be better in a way. But we can't expect to pay

R10 or a burger and in in the US they pay $1 a burger cause the its going to be expensive.

So why when the Rand strengthened did price for petrol/brent crude oil not come down?
 
cavedog said:
So why when the Rand strengthened did price for petrol/brent crude oil not come down?
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No. When the Rand strenthens the prices go up to compensate for the reduced exports, when Rand weakens prices go up to compensate for poor exchange rate. That's how it works.
 
Rubbish that is not how it works with oil.

If the rand gets weaker then the price will obviously go up proving oil has not dropped in price, if the rand gets stronger but the oil price gets higher then it may go up.

What you want is oil to drop and the rand to get stronger and prices will go down.
 
Aqua_lung said:
And Zuma will start raping kids, yeah we heard all before.
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I never said that. Search my posts - I never said anything against Zuma, I always said he's a debonair, suave, man with the mojo.

Anyway don't worry - you'll see.
 
LOLZ!!

I do not get this? If we could use all our natural resources and feed the nation get our rand closer to the dollar the world would not be interested in doing business with us?

Because we do not provide cheap labour and because we do not want to exploit our people we rather have them with no jobs and starving we import cheaply from China where they do not mind paying people with a bowl of rice... . our rand weakens we sell all our natural resources and the circle just goes on and on?
 
PeterCH said:
No. When the Rand strenthens the prices go up to compensate for the reduced exports, when Rand weakens prices go up to compensate for poor exchange rate. That's how it works.
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Ohh. I was wondering cause when the Rand is strong we should pay less for international currencies for example the prices per drum for oil.
 
Mila said:
Because we do not provide cheap labour and because we do not want to exploit our people we rather have them with no jobs and starving we import cheaply from China where they do not mind paying people with a bowl of rice... . our rand weakens we sell all our natural resources and the circle just goes on and on?
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There is no way in heck, that the SA worker can compete with the Chinese one. No way - impossible. Why do you think the Dutch brought people from Indonesia and British from India? The same goes for European workers.
 
cavedog said:
Ohh. I was wondering cause when the Rand is strong we should pay less for international currencies for example the prices per drum for oil.
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I was being sarcastic :). There is always a lag with the oil price catching up to the Rand:USD difference.

Mind you the world economy is picking up and the oil price is rising too.
 
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