The ZAR Exchange Rate Thread

[JayM]

Ramaphoria - all just a lot of hot air!

To be fair, many emerging market currencies are also getting hammered by USD. As is the GBP.

 

[genetic]

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

 

[Vox Populi Vox Dei]

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.

 

[wizardofid]

Highest ever to USD was R16.9x.

11th January 2016 17.6816 ZAR the buying rate was over 18, was for a relative short period

 

[JayM]

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?

 

[JayM]

11th January 2016 17.6816 ZAR the buying rate was over 18, was for a relative short period

Fair enough.

 

[JayM]

14.10

 

[Ho3n3r]

11th January 2016 17.6816 ZAR the buying rate was over 18, was for a relative short period

This makes me feel so much better about it going down the ****ter once again.

 

[Vox Populi Vox Dei]

This makes me feel so much better about it going down the ****ter once again.

It's more contagion from Turkey. Actually need to start a thread about it, surprisingly no one hasn't. Shows the vulnerability of emerging markets!

 

[TehStranger]

I need to send money back to SA, so I'm not entirely unhappy.

 

[wizardofid]

This makes me feel so much better about it going down the ****ter once again.

I don't think it will recover below 13.50 for the rest of the year, it took weeks to get to 13.10 stable.

 

[Lupus]

To be fair, many emerging market currencies are also getting hammered by USD. As is the GBP.

So why have we also increased against the pound??

 

[genetic]

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

 

[JayM]

So why have we also increased against the pound??

ZAR weakened more against the USD than the GBP.

 

[Cage Rattler]

Gbp .. brexit no deal pricing

 

[JayM]

Gbp .. brexit no deal pricing

No deal pricing is 1:1 to the euro...there is still a reasonable chance of a deal which is why it hasn't gone completely titsup just yet.

 

[genetic]

So why have we also increased against the pound??

Because the global trading currency is in USD - whether you base it off the GBP or Swiss Franc, or any currency of your choice.

 

[Sideshow Bob]

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."

 

[BeerIsNotGood...]

Link:
https://www.reddit.com/r/southafric...light_of_people_asking_why_the_rand_shat_the/

Loves this meme

 

[FlashSA]

1 United States Dollar equals
14,29 South African Rand

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