The ZAR Exchange Rate Thread

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Seems rate hike was already priced in. Market is reacting to the announcement there's only two more hikes expected this year.
 
Scooby_Doo said:
Shouldn't a Fed interest hike cause the rand to weaken?
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Dealt with that. Since the manipulators were caught the Rand strengthened from its artificial weakness. Investors were holding out for at least four interest hikes to 2% by the end of the year but now it's become 99% certain there will only be two causing a bunch of drama.
 
R12.68/$. Apparently renewed investor confidence is driving the price down. Hope it stays that way...
 
Agent_Smith said:
R12.68/$. Apparently renewed investor confidence is driving the price down. Hope it stays that way...
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For all the wrong reasons https://businesstech.co.za/news/bus...ronger-as-investors-get-keen-on-south-africa/

According to research analysts at Nomura, South Africa’s ‘positive story’ in the markets is all wrong, and does not take into account the incredibly volatile political situation – where the economy hangs under an axe of a couple of ill-placed moves by president Jacob Zuma – and the country has shown little in the way of growth, and bringing down unemployment.

Nomura holds a more bearish view of South Africa, expecting the rand to start weakening again as the year progresses, and the country’s politics plays out.
 
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Hosehead said:
For all the wrong reasons https://businesstech.co.za/news/bus...ronger-as-investors-get-keen-on-south-africa/

According to research analysts at Nomura, South Africa’s ‘positive story’ in the markets is all wrong, and does not take into account the incredibly volatile political situation – where the economy hangs under an axe of a couple of ill-placed moves by president Jacob Zuma – and the country has shown little in the way of growth, and bringing down unemployment.

Nomura holds a more bearish view of South Africa, expecting the rand to start weakening again as the year progresses, and the country’s politics plays out.
Click to expand...

stating that obvious....
 
Hosehead said:
For all the wrong reasons https://businesstech.co.za/news/bus...ronger-as-investors-get-keen-on-south-africa/

According to research analysts at Nomura, South Africa’s ‘positive story’ in the markets is all wrong, and does not take into account the incredibly volatile political situation – where the economy hangs under an axe of a couple of ill-placed moves by president Jacob Zuma – and the country has shown little in the way of growth, and bringing down unemployment.

Nomura holds a more bearish view of South Africa, expecting the rand to start weakening again as the year progresses, and the country’s politics plays out.
Click to expand...
That assumes the Rand wasn't undervalued. It should be trading at R6.50, perhaps R10 taking into account the politics but no more. It seems to be heading there though.
 
This weakening is entirely due to local trading, as soon as the markets closed last night the rate went flat. This morning, like clockwork, starts slipping again. A LOT of Rand is being converted at the moment.
 
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