The ZAR Exchange Rate Thread

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Interesting that ZAR is seeing it's arse so badly this week. Majority of other EM currencies (with exactly the same Covid worries) are faring much better, and there is plenty of risk-on sentiment.
 
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JayM said:
Interesting that ZAR is seeing it's arse so badly this week. Majority of other EM currencies (with exactly the same Covid worries) are faring much better, and there is plenty of risk-on sentiment.
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It’s improving today though
 
JayM said:
Interesting that ZAR is seeing it's arse so badly this week. Majority of other EM currencies (with exactly the same Covid worries) are faring much better, and there is plenty of risk-on sentiment.
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Load shedding doesn't help
 
Personally, I think the market knows something we don’t. I expect further lockdown restrictions next week.
 
johnjm said:
Personally, I think the market knows something we don’t. I expect further lockdown restrictions next week.
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You do know that mass international market fluctuations affect the Dollar pegged Rand?

Also, I'm assuming you know about the political crisis hit the USA this week? Biggest political news since trump took office. Whenever the US goes into crisis mode, investors flock to the safe-haven that is the Dollar.
 
genetic said:
You do know that mass international market fluctuations affect the Dollar pegged Rand?

Also, I'm assuming you know about the political crisis hit the USA this week? Biggest political news since trump took office. Whenever the US goes into crisis mode, investors flock to the safe-haven that is the Dollar.
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The rand isn't pegged to the dollar.

The dollar is a safe haven and its strength (as gauged by DXY) has increased since Wednesday.

Dollar strength does affect USDZAR, but not because of a peg.
 
cr@zydude said:
The rand isn't pegged to the dollar.

The dollar is a safe haven and its strength (as gauged by DXY) has increased since Wednesday.

Dollar strength does affect USDZAR, but not because of a peg.
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Yeah sorry, didn't mean pegged - bad choice of words. We mostly use the dollar as our international trading currency.
 
genetic said:
You do know that mass international market fluctuations affect the Dollar pegged Rand?

Also, I'm assuming you know about the political crisis hit the USA this week? Biggest political news since trump took office. Whenever the US goes into crisis mode, investors flock to the safe-haven that is the Dollar.
Click to expand...

That doesn’t explain the dollar strength before the capitol drama. And it’s weakening today.
 
genetic said:
Yeah sorry, didn't mean pegged - bad choice of words. We mostly use the dollar as our international trading currency.
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Cool. We do trade mainly in dollars, in fact most currency trades around the world go through USD.
 
BBSA said:
Difficult to say, but it can not be good for the rand long term.
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The next budget speech is going to be interesting, the ANC are kicking off further social and infrastructure programs while refusing to adjust public sector wages and liquidate or sell non-essential entities... they spending way more than what's coming in especially with the draconian first kockdown that all but obliterated tax revenues. I'll be surprised if SARS doesn't go in the red with returns or starts using delay tactics while trying to collect every cent it can.
 
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