The ZAR Exchange Rate Thread

[hj2k_x]

$ = R 8.002
£ = R 15.679
€ = R 12.406
Oil = $ 133.17
Gold = $ 878.02
Last update:
11 Jun 2008 15:30:00

Fun times...

 

[nauseous_monkey]

American Dollar is a worthless currency. I base this on the fact that they have so much debt and because they have no gold standard.

 

[DJ...]

American Dollar is a worthless currency. I base this on the fact that they have so much debt and because they have no gold standard.

The USD is backed by the trade of the currency. More importantly, the US Reserve overstated their gold reserves in the early 90s and I can assure you, they most certainly have substantial gold reserves (on paper at least). Thirdly, the debt is irrelevant because their cash flow is fine. If not, gilts would be defaulting and their currency would be crashing!

 

[nauseous_monkey]

Who has a gold standard?

Not too many countries. Its almost totally gone these days.

 

[Skinner]

The Rand has free falled completely into its moer in, after the lower-than-expected rate hike of only 0.5% !!!!!!!!

I feel rich with my Euros!!!!!!!

 

[hj2k_x]

$ = R 8.118
£ = R 15.794
€ = R 12.509
Gold = $ 861.45
Last update:
12 Jun 2008 18:30:00

Oh dear.

 

[sand_man]

Apart from that it seems that SA is in a good development.
Solid national finances, good economy growth....
And in Johannesburg there are bigger buildings than in Berlin.

That's pleasant comment from a foreigners perspective and much appreciated

 

[sand_man]

The Rand has free falled completely into its moer in, after the lower-than-expected rate hike of only 0.5% !!!!!!!!

Rands been under pressure the whole week, nothing to do with interest rates but I suspect more to do with ramblings up north...

 

[Skinner]

Rands been under pressure the whole week, nothing to do with interest rates but I suspect more to do with ramblings up north...

Well a higher interest rate hike would have added some resistance to the Rand falling, but with the known 0.5% increase, there is nothing stopping the rand falling down the abyss any more now

Long live the Euro

 

[hj2k_x]

At least it's Friday tomorrow and monday is a public holiday...

 

[sand_man]

Well a higher interest rate hike would have added some resistance to the Rand falling, but with the known 0.5% increase, there is nothing stopping the rand falling down the abyss any more now

Long live the Euro

I'm sorry but I don't see the correlation between a strong rand and high interest rates. If anything the idea of people losing both their livelihoods and their homes as a result of high interest rates would tarnish foreign perception of SA and reflect negatively on our currency. High interest rates doesn't make anyone wealthier, it creates more debt for those in debt and discourages those who are not, from making debt...

 

[Syndyre]

I'm sorry but I don't see the correlation between a strong rand and high interest rates. If anything the idea of people losing both their livelihoods and their homes as a result of high interest rates would tarnish foreign perception of SA and reflect negatively on our currency. High interest rates doesn't make anyone wealthier, it creates more debt for those in debt and discourages those who are not, from making debt...

It makes it more profitable to invest money in SA because you get a higher return, like with the Carry trade.

 

[Skinner]

I'm sorry but I don't see the correlation between a strong rand and high interest rates. If anything the idea of people losing both their livelihoods and their homes as a result of high interest rates would tarnish foreign perception of SA and reflect negatively on our currency. High interest rates doesn't make anyone wealthier, it creates more debt for those in debt and discourages those who are not, from making debt...

I was referring to my own situation.

The fact that the interest rate was only raised by 0.5% caused the Rand to freefall against the Euro, so making my Euros against the Rand worth more (as I'm sending my Euros at times to SA for investment in Rand).

Too bad for those in debt. At least the increase is only 0.5%. For now.

 

[Skinner]

It makes it more profitable to invest money in SA because you get a higher return, like with the Carry trade.

Exactly, hence the advantage to my situation and the fact that I invest Rands in SA from my Euros.

Sandmann doesn't seem to grasp that.

 

[sand_man]

The fact that the interest rate was only raised by 0.5% caused the Rand to freefall against the Euro

The rand has been taking a pounding (pun intended) since the beginning of June.

https://isl.secure.za.investec.com/Default.aspx

I'm not sure interest rates have the suggested effect on the rand that you are claiming. I think civil unrest in SA and Zim has a far greater influence on our currency than prospectors in foreign currency...

 

[Skinner]

The rand has been taking a pounding (pun intended) since the beginning of June.

https://isl.secure.za.investec.com/Default.aspx

I'm not sure interest rates have the suggested effect on the rand that you are claiming. I think civil unrest in SA and Zim has a far greater influence on our currency than prospectors in foreign currency...

There is a difference between "taking a pounding" and "freefall". Just watch a graph for the last 3 months and the last few hours and you'll see what I mean.

 

[hj2k_x]

$ = R 8.145
£ = R 15.852
€ = R 12.525
Oil = $ 135.66
Gold = $ 867.9
Last update:
13 Jun 2008 11:30:00

Not falling so much...

 

[hj2k_x]

We'll see what happens tomorrow...

 

[kiepie]

R8.00 / $

Yup! And with Oil down to $130!

Down Down they go!

 

[sand_man]

There's talk of the Saudis upping production which could result in a drop in the oil price but be holding your breathe...