The ZAR Exchange Rate Thread

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Lupus said:
Doesn't look like it to me, pound is sitting at 20, the Euro is a rand more, the AUD. So how is this just dollar?? Sure it's almost a R1.40 more but we did see massive drops after load shedding and the floods
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BBSA said:
Sure, but all our cost of living goes up and all local assets goes down in value.

BTW, I do hold a big position in USD.
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It all comes down to the split really, in so far as it's a positive or negative in your personal situation. Depending where you derive the bulk of your income from, the rand slipping can make your local exposure even cheaper.
 
Harmonic said:
It all comes down to the split really, in so far as it's a positive or negative in your personal situation. Depending where you derive the bulk of your income from, the rand slipping can make your local exposure even cheaper.
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For the vast majority of South Africans, this is terrible.

Fuel goes up; price of goods goes up; living month-to-month gets even harder; quality of life goes down.
 
airborne said:
What I find quite astonishing is the dollar is nearing parity with the pound, it used to be worth half the pound.
Weird times
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50% world situation, 50% Brexit. EUR may also hit parity this week.
 
Some excerpts from todays newsletter

  • I haven’t written for a while. There are not enough expletives in the English language to adequately describe what I and other South Africans are really feeling, and I don’t want add to the negativity currently gripping the Country.
  • Also by the time 8Am rolls around I am too exhausted to find the energy (excuse the unintended pun) to write anything useful. This is because of the constant buzzing and pinging and whirring of all household appliances resetting during the night every time Eskom switches the power on and off, which is fairly frequent. My generator has developed a severe case of bipolar disorder as it tries to decide whether it’s coming or going. Much the same for my sleep patterns.
  • Things in our beloved country are not going well, and once again I reiterate that it’s not going to improve anytime soon. I’ve said this enough times over the last few years not to have to reiterate the causes and symptoms in daily commentaries.
  • When you carefully consider the macro picture in South Africa its surprising that the Rand hasn’t lost more ground.
  • We can thank the resource exporters for that, they remain very active. However there are emerging risks that may change that dynamic.
  • A potential global recession is beginning to look likely, leading to a decline in demand for our exports. But that’s for another day.
  • In SA we are also likely to see growth decline even further as energy inflation eats further into discretionary spending power. The petrol price is doing much of the SARB’s job for them. They will be very conscious of GDP growth when deciding on the pace for future rate hikes.
  • In the short term the Rand will follow international risk signals and the quantum of export USD supply means that the market is probably long of the greenback as we speak.
  • However the other side of the supply/demand coin is that sentiment is very poor and doesn’t look likely to improve anytime soon.
  • It would be a major surprise to me if the Rand was able to regain the 15 handle anytime soon.
  • Good luck.
 
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