Rand strengthens with R14.00 to US Dollar

Chris

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Mar 10, 2021
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Rand strengthens with R14.00 to US Dollar

The rand has broken through R14.00 to the US Dollar and is trading at levels last seen in January 2020.

The rand was one of the currencies which were the hardest hit after the COVID-19 pandemic started to spread around the world.

The local currency, along with other emerging market currencies, weakened significantly as investors were looking to safe havens when the pandemic gained momentum.
 

geekonometry

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Dec 7, 2020
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Pointless if the local prices of stuff never goes down. Honestly, groceries wont go down because why should they. At the end just make more money for the big companies whilst the consumer struggles with the initial R19 price hikes
 

MightyQuin

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Rand strengthens with R14.00 to US Dollar

The rand has broken through R14.00 to the US Dollar and is trading at levels last seen in January 2020.

The rand was one of the currencies which were the hardest hit after the COVID-19 pandemic started to spread around the world.

The local currency, along with other emerging market currencies, weakened significantly as investors were looking to safe havens when the pandemic gained momentum.
That headline needs some work...
 

deweyzeph

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Pointless if the local prices of stuff never goes down. Honestly, groceries wont go down because why should they. At the end just make more money for the big companies whilst the consumer struggles with the initial R19 price hikes

If the rand stablises at a certain level then eventually prices will come down, otherwise other suppliers will undercut those with higher prices. The problem is you have the rand swinging from one extreme to the other in very short time spans. Imagine being an importer who bought stock when it was R19 to the dollar and now has to get rid of it when the rand is R14 to the dollar, and being accused of being greedy because you're pricing your stock at R19/$ levels in order to make some profit. Margins are tight enough as it is without having to deal with the fluctuating exchange rate.
 

mypetcow

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The running costs of power ships don't seem so expensive do they now. So much for the exchange rate always getting worse ;)
 

Lupus

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If the rand stablises at a certain level then eventually prices will come down, otherwise other suppliers will undercut those with higher prices. The problem is you have the rand swinging from one extreme to the other in very short time spans. Imagine being an importer who bought stock when it was R19 to the dollar and now has to get rid of it when the rand is R14 to the dollar, and being accused of being greedy because you're pricing your stock at R19/$ levels in order to make some profit. Margins are tight enough as it is without having to deal with the fluctuating exchange rate.
R19 was over a year ago though, so yeah should've sold out around when it was R18. It's been around the R14 to R15 mark for most of 2021 so far.
 

deweyzeph

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R19 was over a year ago though, so yeah should've sold out around when it was R18. It's been around the R14 to R15 mark for most of 2021 so far.

Sure, that's an extreme example, but even small swings of 50c to a R1 are massive compared to the dollar or pound. In the UK people get worked up if the pound moves half a penny to the dollar.
 

Creag

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Awesome news. But Lego is linked to the € so not sure when I can rejoice on this. We can only hour they Lego process come down again, soon!
 

Lupus

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Sure, that's an extreme example, but even small swings of 50c to a R1 are massive compared to the dollar or pound. In the UK people get worked up if the pound moves half a penny to the dollar.
Yup in our case it's because a 2% swing can make it seem high. For the pound a 2% swing will probably be a penny.
 

LCBXX

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"The Rand must be weakened!"
- Zwelinzima Vavi, 2013 (taking dirty to Jacqueline Phooko)
 

garp

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I suspect that this is an indication of looming US (and UK) inflation. It will be interesting, and rather begs the question as to where is a safe haven for your money.
 

krycor

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More like dollar tanked following jobs number on Friday evening.
 

krycor

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I suspect that this is an indication of looming US (and UK) inflation. It will be interesting, and rather begs the question as to where is a safe haven for your money.

Kinda longer term.. it’s interesting as if you check they have pricing going up and employed not coming back apparently so need to fork out more for employees.. resulting in upward salaries and prices again.
 
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