The Rand is collapsing !

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mitchmagi

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For those who missed it - ZAR is collapsing ... R9.97 to USD and R17.30 to GBP in after hours trade ... 8.5% sell off in the space of mere hours
 
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lol - really? you mean to tell us our money is worth nothing!??
 
Watching it right now - seen the US equities market as well?

S&P down 6.35%
Nasdaq down 5.51%
Dow down 5.2%

EDIT: but starting to recover now...

Losing all the gains made yesterday.

This is something to certainly watch out for. I am just a little confused as to what the hell has happened in such a short space of time for the rand to weaken so much. No news from our side could have impacted the markets so it must be money pouring back in to the US and out of emerging markets...
 
Combination of the emerging market pull out along with some clear indication that the currency was specifically targeted by traders in order to have it move so significantly in such a short space of time ( after hours trade particularly ) Somebody made money !
 
Just as well I decided not to take a holiday abroad this year. It would just not be worth it to see all your rands slip away in exchance for a few measly dollars.
 
mitchmagi said:
Combination of the emerging market pull out along with some clear indication that the currency was specifically targeted by traders in order to have it move so significantly in such a short space of time ( after hours trade particularly ) Somebody made money !
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Don't have access to my terminal right now, but how are similar currencies holding up?
 
news24 said:
I just wish we can go for R20 against the dollar, It would be so awesome, considering that I'm underpaid in Dollars
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Now you sound like Skinner...:mad:

When the rand reaches R20 to the dollar, you will soon realise that being paid in dollars but living in SA aint going to help...:rolleyes:
 
I import in $, just had to revise a quote for the 3rd time.....man i hate currency speculation.
 
Lourens said:
Not bad, one of my investents increased with 33% over the last three weeks!
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Fund or direct investment? Care to share what this was? Was looking through some fund stats the other day and didnt see 33% returns.

I am assuming that by investment you mean fund, and because you say this isn't bad, it must be a fund with significant exposure to the dollar and minimal equities exposure?
 
**** me!!!! But it was like R8.99 or something like that this morning!!! WTF!!! But it is investors pumping money back in the states.
 
It's affecting all major emerging markets - complete risk aversion ... but for the currency to lose 10% in mere hours is scary ...
 
mitchmagi said:
It's affecting all major emerging markets - complete risk aversion ... but for the currency to lose 10% in mere hours is scary ...
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The yen's been strengthening a lot lately too, looks like everyone's unwinding their carry trades, not good for the rand.
 
mitchmagi said:
It's affecting all major emerging markets - complete risk aversion ... but for the currency to lose 10% in mere hours is scary ...
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It just shows how much our currency is outside of our control - that is a major sell off and not good from an investor confidence perspective.

I don't however believe that they can justify a sell-off like this based on risk aversion - if anything, we are less of a risk than many of the so called AAA countries at the moment. I reckon its money being ploughed back in to failing equity and fixed income markets. Cross-asset class investment to recover.
 
DJK said:
It just shows how much our currency is outside of our control - that is a major sell off and not good from an investor confidence perspective.

I don't however believe that they can justify a sell-off like this based on risk aversion - if anything, we are less of a risk than many of the so called AAA countries at the moment. I reckon its money being ploughed back in to failing equity and fixed income markets. Cross-asset class investment to recover.
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They're probably selling everything they can now, SA equities are at least still liquid, can't say the same for a lot of their assets.
 
This is a good news to some extent, I was asking myself a few months ago when the Rand was sub R7 to the dollar, why would they buy so much in dollar securities, looks like they will cash in very soon. SA's manufactures and producers should max their production rate for exports.

Ouch! for importers crippling SA companies...
 
R18.30 against the pound! Oh I love it because i'm getting paid in pounds!!!
 
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