The ZAR Exchange Rate Thread

Johnatan56

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Dollar strength due to the Fed talking about raising interest rates later this year. So money is flowing back to the US to capitalize on that.
Yes/no, don't think that was the main impact.
While the decline is being largely attributed to a surging dollar, the fact that the JSE was offline to trading for most of Wednesday may have also been a factor in the currency weakening.
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Rand weakened against everything while EUR/USD seems pretty stable, same for EUR/pound (less than a 1c move between the two).
 

cr@zydude

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Sensorei

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Yes/no, don't think that was the main impact.

Rand weakened against everything while EUR/USD seems pretty stable, same for EUR/pound (less than a 1c move between the two).
The US$ Strength Index is the key indicator (DXY) here with the $ strength measured against a wide range of trade partner country currencies. This shows the $ is the strongest it has been since November.
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Johnatan56

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The US$ Strength Index is the key indicator (DXY) here with the $ strength measured against a wide range of trade partner country currencies. This shows the $ is the strongest it has been since November.
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Not saying dollar hasn't strengthened, just that the impact against the rand is more than it should be.
 

cr@zydude

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Yup the Rand has only lost 3% to the dollar, while the oil price has dropped about 8%.

CEF petrol over recovery was 4.6c/l on Friday, pointing to a 4-5c/l price drop. That is with 15 of 20 data points 'locked in', so it is unlikely to flip into a price increase. Additionally, we currently have a 6.58c/l slate charge adding to the petrol price, which could go away in September, bringing prices down more.
 

krycor

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Covid delta variant running rampant thru the US has oil markets weary of recovery being sustainable hence the drop. OPEC haven’t adjusted hence lower cost.

Also due to dollar strength(tapering talks.. transience isn’t so transient and action may be coming a lot sooner) so oil price drops to offset affordability outside of US.

Ps. Can’t believe so much antivaxers .. I see Cpt has their own protesting now.
 
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