The ZAR Exchange Rate Thread

Status
Not open for further replies.
But it is back to R16.00 at the moment, and the historical chart doesn't show the fall to R17.99?
 
LazyLion said:
But it is back to R16.00 at the moment, and the historical chart doesn't show the fall to R17.99?
Click to expand...

Today's chart seems borked, at least the XRates and XE ones. Not updated every few minutes like always. Saw a chart somewhere in the melee I went through this morning which clearly indicated it, though.
 
Ho3n3r said:
Today's chart seems borked, at least the XRates and XE ones. Not updated every few minutes like always. Saw a chart somewhere in the melee I went through this morning which clearly indicated it, though.
Click to expand...

The markets aren't open yet. It will show correctly just after 9.
 
I almost spewed my coffee.... WTF queue electronic equipment price hikes....... :sick:
 
The search for the 'why' of the move continues.

Via Bloomberg comes this:

The move initially had traders scratching their heads about whether it was a lack of liquidity early in Asia or investors dumping assets tied to Chinese growth
The rand ... has been hurt by a slump in commodity prices, lackluster economic growth and rising U.S. interest rates
"The huge spike in risk aversion last week, poor liquidity and position liquidation have hit the rand this morning" said Robert Rennie, the global head of currency and commodity strategy at Westpac
Losses in the rand accelerated in December after President Jacob Zuma unexpectedly fired his finance minister only to alter the decision days later
The tumultuous start to the year in China has further damaged sentiment
"The recent market turmoil has pushed volumes up and made carry trades less attractive," said Nizam Idris, head of foreign-exchange and fixed-income strategy at Macquarie Bank Ltd. in Singapore. "I don't think it was driven by any fundamental arguments" and carry trades funded by the Japan's yen had been taken out, he said.
Click to expand...
.
 
was a bit dumbfounded - monday morning blues.

click on the forum news from the article, wondering Wtf is everybody talking about R7 to the USD levels.

then i noticed the first post date - 2008 :/

i need some coffee
 
Dave123 said:
Real value and true value mean the same thing, you'll notice I kept stressing the fact you kept on about the true value.

HavocXPhere has covered the rest.
Click to expand...
So you have nothing on what its true value is.
 
More banana peels waiting for the rand - expert

Carin Smith

Cape Town - Any expectations of a respite for the rand after last week's beating were given a final nail in the coffin when President Jacob Zuma stated that the turmoil regarding Nenegate was not all that serious, and that markets did not understand what he was trying to do.

This is according to Wichard Cilliers, director and chief dealer at treasury services company TreasuryOne.

"This week has got a lot of potential banana peels that the rand could slip on. Several speeches by US Fed members could impact the markets, should any news of future rate hikes become evident," he said.

Chinese trade balance data due on Wednesday and Chinese gross domestic product (GDP) numbers released on Thursday could also be a market shaker, in his view.

"This could be a harsh one for the rand, as the market seems to have turned its collective back on the currency and the only question is, how far will the rand fall?” explained Cilliers.

"So much for thinking that last week was the worst possible start for the rand and that things will only get better."

After a week of Chinese economic uncertainty, North Korea's nuclear testing and higher than expected non-farm payroll numbers, it looked like there could be some respite for the rand.

"This could have been the case, up until the South African president stated that the turmoil regarding the finance minister roller-coaster was not too serious and markets did not understand what he was trying to do," said Cilliers.

"This was the final nail in the coffin for the rand, as the rand blew out to a record high of R17.95 against the US dollar before settling down at R16.70 before South African markets opened."

He said the Chinese narrative of an economy under pressure and the continued risk off notion regarding South Africa will keep the rand on the back foot, with not a lot going for the currency or the country.

That is why he thinks it is a given that the Reserve Bank's monetary policy committee (MPC) will raise interest rates at the end of the month.

"The question is, by how much? A 25-point hike seems almost arbitrary, but too much of a hike will definitely put South Africa in a recession," said Cilliers.

Analysts at Standard Bank said on Monday that the rand’s "uncontrolled depreciation" may cause the MPC to raise rates by 50 basis points later this month.

By early afternoon the rand was trading at R16.49 to the dollar.

Fin24
Source
http://www.fin24.com/Markets/Currencies/more-banana-peels-waiting-for-the-rand-expert-20160111
 
Status
Not open for further replies.
Back
Top
Sign up to the MyBroadband newsletter
X