The ZAR Exchange Rate Thread

genetic

Honorary Master
Joined
Apr 26, 2008
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26,573
Ramaphoria - all just a lot of hot air!
It's not always related to the ANC you know...

The rand, which lost over 2% against the dollar on Thursday, weakened again in early trade on Friday, losing another 1.3% by 12:11 to trade at R13.88 to the dollar.

“The rand is certainly on the back foot as the dollar continues to squeeze emerging market currencies,” Botes said. US consumer price index (CPI) data is set for release on Friday and will serve as an indicator of investor expectations of interest rate hikes. “The general consensus is for CPI in the US to rise, which will certainly add to emerging market currency woes,” said Botes.
https://www.fin24.com/Markets/Currencies/rand-nears-r14-as-dollar-firms-to-13-month-peak-20180810
 
Joined
Mar 6, 2004
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To be fair, many emerging market currencies are also getting hammered by USD. As is the GBP.
EWC and other nonsense isn't helping.

But fortunately I have invested a fair whack in the Sygnia USA ETF, so although Rand-denominated, I have access to the US stock market, so a strong US economy is not all bad news for me :). In fact just checked, the value of my investment has never been higher.
 

JayM

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Oct 30, 2005
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1,732
EWC and other nonsense isn't helping.
Of course.

But fortunately I have invested a fair whack in the Sygnia USA ETF, so although Rand-denominated, I have access to the US stock market, so a strong US economy is not all bad news for me :). In fact just checked, the value of my investment has never been higher.
Investing in ZAR denominated instruments mostly defeats the point of offshore investing. When the money-grab happens, way too easy for that to be stolen. It is a breeze to set up a proper offshore bank + brokerage accounts - why not go that route?
 

genetic

Honorary Master
Joined
Apr 26, 2008
Messages
26,573
EWC and other nonsense isn't helping.
That isn't the reason why the Rand is tanking. All emerging markets are tanking;

the rand's fall was linked to dollar strength, saying the local currency was "on the back foot as the dollar continues to squeeze emerging market currencies".

Turkey’s economic crisis sent investors fleeing from emerging-market assets.
https://www.fin24.com/Markets/rand-breaches-r14dollar-for-first-time-this-year-20180810
 

surface

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Oct 23, 2006
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That isn't the reason why the Rand is tanking. All emerging markets are tanking;

https://www.fin24.com/Markets/rand-breaches-r14dollar-for-first-time-this-year-20180810
Absolutely. Here is a good read.

http://www.rollingalpha.com/2017/07/21/rand-weakened-since-1971/

"Exchange rates are not simply a statement of faith in a country’s government. Instead, they are economic data points that may be influenced by governments, but are mostly a function of fundamental economic differences between two countries."
 

FlashSA

Executive Member
Joined
Oct 19, 2007
Messages
7,666
1 United States Dollar equals
14,29 South African Rand

Lirah getting hammered and I fear the Rand will bleed further tomorrow morning....
 
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