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This page's sole purpose is to provide readers with an interactive chart of the Rand/Dollar exchange rate over time. Readers can draw on the graph, download data, zoom in and out and save it as a image and use it as they see fit. The graph will be updated daily (if we forget to do so we will update at the soonest possible opportunity).
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Rand/ US Dollar Exchange Rate chart
Below the interactive graph of the Rand/ US Dollar Exchange Rate since the start of 2013. It also contains significant events influencing the ZARUSD exchange rate over time.
Users can zoom in and out of the graphic.
Significant events affecting the exchange rate is shown on the graph.
Users can download the graphic as an image or PDF
Users can download the data in the graphic by using the button on the bottom right
Users can zoom in and out of the graphic.
Significant events affecting the exchange rate is shown on the graph.
Users can download the graphic as an image or PDF
Users can download the data in the graphic by using the button on the bottom right
Two significant events are highlighted in the exchange rate graphic. And on both occasions its President Zupta, sorry Zuma firing respected Finance Ministers in order to place Gupta approved and Gupta brother friendly cronies into the finance minister position so that they can further raid the state coffers as they see fit, while the ANC lead government does nothing to stop their president or the continued looting of state resources. This will surely hurt them in the 2019 elections. We have already seen the impact of State Capture, E-tolls, President flaunting the constitution etc had on the ANC support base in the municipal elections.
26 May 2020: Market summary and review by Peregrine Treasury Services
GROWING UNREST OVER ‘DRACONIAN’ LOCKDOWN MEASURES
South Africa is still awaiting the new eased regulations under lockdown level four that were announced last week, while we prepare for the drop to level three at the end of May. Speculation remains rife as to whether the entire country will be eased to level three, and if not, how the different levels will be implemented and enforced between districts within the same province. For many, however, lockdown has become nothing more than a mere idea.
Stories abound that the illicit cigarette trade is booming, while individuals working in industries such as beauty and personal grooming (which are only allowed to start functioning under level one), have resorted to travelling to client’s homes to render their services in an effort to avoid financial devastation. Many are now branding the lockdown as draconian, arguing that the choice between contravening lockdown regulations or suffering financial devastation is no choice at all. At the current pace, it seems that the nation may force the government’s hand in easing more restrictions under level three than was initially planned, or else risk facing the fallout of broad-based civil disobedience.
The call for an end to the lockdown has been vilified by those fearful of contracting the virus. However, the call for freedom should not be confused with a disregard for life, as while every South African is by now well aware of the risks associated with the virus, many are also all too familiar with the devastation that poverty and hunger can cause. And on this note, the Democratic Alliance has called for the freedom of choice to be returned to the nation, appealing to the courts to declare many of the lockdown regulations as unlawful, including the lack of oversight of the national command council, the curfew, and the specified exercise times.
After weeks of range-bound trading, the local currency finally managed to gain some momentum as risk assets rallied on Wednesday and Thursday, breaking below R18.00/$. Currently no news is good news for the rand, and we can look for a move towards R17.50/$ with the rally expected to lose some steam as we approach this level.
The highly anticipated SARB interest rate decision on Thursday then saw interest rates decrease by 50bps, in line with expectations given the subdued inflation and economic turmoil the country faces. In addition to the interest rate decision, key releases on the data calendar for the week included gold, mining and manufacturing production. Gold and mining production gained 11.5% and 7% respectively year-on-year in February, while manufacturing production contracted by 2.1% during the same period.
LOOKING AHEAD
The market continues to be driven by sentiment, see-sawing between risk-on and risk-off as the pandemic unfolds and economic activity resumes. While cautiously optimistic, some of the risks we need to keep an eye on include:
In terms of data, the following releases are due in the week ahead:
Tuesday:
South Africa is still awaiting the new eased regulations under lockdown level four that were announced last week, while we prepare for the drop to level three at the end of May. Speculation remains rife as to whether the entire country will be eased to level three, and if not, how the different levels will be implemented and enforced between districts within the same province. For many, however, lockdown has become nothing more than a mere idea.
Stories abound that the illicit cigarette trade is booming, while individuals working in industries such as beauty and personal grooming (which are only allowed to start functioning under level one), have resorted to travelling to client’s homes to render their services in an effort to avoid financial devastation. Many are now branding the lockdown as draconian, arguing that the choice between contravening lockdown regulations or suffering financial devastation is no choice at all. At the current pace, it seems that the nation may force the government’s hand in easing more restrictions under level three than was initially planned, or else risk facing the fallout of broad-based civil disobedience.
The call for an end to the lockdown has been vilified by those fearful of contracting the virus. However, the call for freedom should not be confused with a disregard for life, as while every South African is by now well aware of the risks associated with the virus, many are also all too familiar with the devastation that poverty and hunger can cause. And on this note, the Democratic Alliance has called for the freedom of choice to be returned to the nation, appealing to the courts to declare many of the lockdown regulations as unlawful, including the lack of oversight of the national command council, the curfew, and the specified exercise times.
After weeks of range-bound trading, the local currency finally managed to gain some momentum as risk assets rallied on Wednesday and Thursday, breaking below R18.00/$. Currently no news is good news for the rand, and we can look for a move towards R17.50/$ with the rally expected to lose some steam as we approach this level.
The highly anticipated SARB interest rate decision on Thursday then saw interest rates decrease by 50bps, in line with expectations given the subdued inflation and economic turmoil the country faces. In addition to the interest rate decision, key releases on the data calendar for the week included gold, mining and manufacturing production. Gold and mining production gained 11.5% and 7% respectively year-on-year in February, while manufacturing production contracted by 2.1% during the same period.
LOOKING AHEAD
The market continues to be driven by sentiment, see-sawing between risk-on and risk-off as the pandemic unfolds and economic activity resumes. While cautiously optimistic, some of the risks we need to keep an eye on include:
- US-China trade tensions
- A potential second wave of the virus as economies ease
- Slower than expected economic recoveries following lockdowns
- Medical trials proving the latest possible vaccine ineffective
In terms of data, the following releases are due in the week ahead:
Tuesday:
- RSA leading business cycle indicator
- US new home sales
- CN industrial profits
- RSA inflation
- RSA PPI
- US durable goods order
- USD GDP
- US initial jobless claims
- RSA consumer confidence
- RSA trade balance
- EU inflation
16 April 2020: The 200 basis points cut in REPO in recent weeks hurts the Rand
While the interest rate cuts is good news for struggling consumers and provides some much needed relief for people during this difficult time created by Covid-19, the fact is lower interest rates is not good news for a country's currency. The reason for this is the fact that the interest foreigners earn in South Africa in interest bearing investments decline as interest rates tend lower, and investors then review their portfolios and if the interest earned is not enough to justify the risk to invest in South Africa foreign investors take their funds and invest it elsewhere. South Africa is seen as an emerging market and as such investors expect a yield premium for them to invest in South Africa, if the yield premium declines due to lower rates their risk assessment models might tell them to move cash out of South Africa, and this leads to a weakening of the country's exchange rate
30 March 2020: Moody's downgrading SA to junk status see Rand break R18/$
In an announcement that was expected (especially considering the impact Coronavirus on the economy due to the 21 day lockdown) , Moody's downgrade South Africa to sub investment grade (or junk status) on Friday evening. While it was largely priced into the markets the Rand lost more than 2% against the US Dollar, especially after the South African Finance Minister, Tito Mboweni, mentioned the IMF and World Bank and that if South Africa were to go to these institutions it would be to obtain Coronavirus related funding. The markets did not like the fact that the minister mentioned the IMF and World Bank and this lead to the strong sell off in the South Africa Rand against all major currencies.
9 March 2020: Rand plummets and luckily for South Africans so does oil
The following extract was obtained from Fin24.com discussing the Rand's latest plunge as well as strong decline in the oil price.
The rand slumped to its weakest level in almost five years after stock markets plunged around Asia on Monday, as panic selling set in with traders fretting over the economic impact of the new coronavirus and digesting a free-fall in the oil price. By early morning on Monday, the rand was down more than 3% to R16.21/$ after reaching R16.97 earlier in the session. It was trading above R21 to a pound and against the euro it plunged by almost 5% to R18.44.
The benchmark Nikkei 225 index had dropped 5.10 percent or 1,058.06 points to 19,691.69, while the broader Topix index was off 5.01 percent or 73.69 points to 1,397.77 in early trading on Monday. Other markets in the region were also suffering with Hong Kong stocks down 3.8 percent at the open, Australia off more than five percent and equities in New Zealand and South Korea both down by just under three percent.
In China, the benchmark Shanghai Composite Index dived 1.56 percent while the benchmark Philippine stock exchange index opened down nearly four percent. Driving the declines was a ferocious sell-off in the oil markets sparked by top exporter Saudi Arabia slashing prices - in some cases to unprecedented levels - after a bust-up with Russia over oil production.
Read the full article here
The rand slumped to its weakest level in almost five years after stock markets plunged around Asia on Monday, as panic selling set in with traders fretting over the economic impact of the new coronavirus and digesting a free-fall in the oil price. By early morning on Monday, the rand was down more than 3% to R16.21/$ after reaching R16.97 earlier in the session. It was trading above R21 to a pound and against the euro it plunged by almost 5% to R18.44.
The benchmark Nikkei 225 index had dropped 5.10 percent or 1,058.06 points to 19,691.69, while the broader Topix index was off 5.01 percent or 73.69 points to 1,397.77 in early trading on Monday. Other markets in the region were also suffering with Hong Kong stocks down 3.8 percent at the open, Australia off more than five percent and equities in New Zealand and South Korea both down by just under three percent.
In China, the benchmark Shanghai Composite Index dived 1.56 percent while the benchmark Philippine stock exchange index opened down nearly four percent. Driving the declines was a ferocious sell-off in the oil markets sparked by top exporter Saudi Arabia slashing prices - in some cases to unprecedented levels - after a bust-up with Russia over oil production.
Read the full article here
24 February 2020: Peregrine Treasury services states Rand headed one way
Rand headed one way...
Brace yourself for choppy waters as we head towards the local budget, with a bias towards a weakening currency. Should we see the ZAR sustain a breach of the next technical level, set at R15.12, there will be very little support for the unit as it makes its way towards R15.20. Expect a broader range next week, with the potential for the rand to weaken towards the R15.50 on the back of the budget speech. We will also be keeping an eye on data including local PPI and trade balance, US GDP and Chinese manufacturing PMI, which will merely reinforce the direction of the ZAR instead of determining it. The rand started Friday’s trading day at R15.10/$, R16.29/€ and R19.45/£.
Brace yourself for choppy waters as we head towards the local budget, with a bias towards a weakening currency. Should we see the ZAR sustain a breach of the next technical level, set at R15.12, there will be very little support for the unit as it makes its way towards R15.20. Expect a broader range next week, with the potential for the rand to weaken towards the R15.50 on the back of the budget speech. We will also be keeping an eye on data including local PPI and trade balance, US GDP and Chinese manufacturing PMI, which will merely reinforce the direction of the ZAR instead of determining it. The rand started Friday’s trading day at R15.10/$, R16.29/€ and R19.45/£.
12 February 2020: Peregrine Treasury Services expects rand weakness to remain intact
The week ahead will see local policy come into focus as we gear up for State of the Nation Address. Key issues such as SOEs, expropriation without compensation and the nationalisation of the SARB are expected to make headlines. The rand is making its way towards the R15.00 mark once again, with our bias towards weakness remaining intact. The local unit has the potential to makes its way to R15.20 as we brace for policy outcomes from the ruling party ahead of national budget. The rand started Friday’s trading day at R14.90/$, R16.37/€ and R19.29/£.
31 January 2020: Peregrine Treasury Services says bias to rand weakness remains intact
Bias to rand weakness remains intact
The bias towards rand weakness remains intact as we navigate our way towards the upcoming risk events. We will be keeping a close eye on the spread of the coronavirus, which is likely to continue to make headlines in coming weeks. From a data perspective we will turn our attention to local vehicle sales and Standard bank PMI next week. The EU will be releasing retail sales and PMI, while the release of the ECB Economic Bulletin and EU economic forecasts will be released on Thursday. We will turn towards the US for manufacturing numbers, factory orders as well as numerous payroll and employment data releases.
The rand started Friday’s trading day at R14.77/$, R16.29/€ and R19.34/£.
The bias towards rand weakness remains intact as we navigate our way towards the upcoming risk events. We will be keeping a close eye on the spread of the coronavirus, which is likely to continue to make headlines in coming weeks. From a data perspective we will turn our attention to local vehicle sales and Standard bank PMI next week. The EU will be releasing retail sales and PMI, while the release of the ECB Economic Bulletin and EU economic forecasts will be released on Thursday. We will turn towards the US for manufacturing numbers, factory orders as well as numerous payroll and employment data releases.
The rand started Friday’s trading day at R14.77/$, R16.29/€ and R19.34/£.
6 March 2020: South Africa's first confirmed Coronavirus case hurts the Rand
Expect more risk averse behaviour and a weak rand that tests R15.80
The landscape remains treacherous as monetary easing fails to soothe the troubled market. Continuous fear, propelled by uncertainty poses a significant threat to the global economic and financial stability, as governments tries to combat the complete shutdowns of economies.
The week ahead will see a continuation off the risk-averse behaviour. We are biased towards a weak rand, and additional sell-offs, with the rand likely to move towards the next key level of R15.80.
Some of the key data for the week ahead includes:
The rand is already trading significantly weaker this morning as a result of the local coronavirus confirmation, starting the day at R15.69/$, R17.62/€ and R20.33/£.
The landscape remains treacherous as monetary easing fails to soothe the troubled market. Continuous fear, propelled by uncertainty poses a significant threat to the global economic and financial stability, as governments tries to combat the complete shutdowns of economies.
The week ahead will see a continuation off the risk-averse behaviour. We are biased towards a weak rand, and additional sell-offs, with the rand likely to move towards the next key level of R15.80.
Some of the key data for the week ahead includes:
- Chinese CPI and PPI ( Monday)
- EU GDP ( Tuesday)
- UK GDP (Wednesday)
- US CPI (Wednesday)
- RSA Mining and gold production (Thursday)
- ECB interest rate decision (Thursday)
The rand is already trading significantly weaker this morning as a result of the local coronavirus confirmation, starting the day at R15.69/$, R17.62/€ and R20.33/£.
6 January 2020: The Rand remains volatile
As we wish our readers a prosperous 2020, we can promise you all one thing. The Rand will continue to yo-yo up and down and will remain one of the most volatile currencies out there. We suggest looking to take money out of South Africa when it has a strong run, as it had just before the end of 2019, and then look to repatriate (or bring back that money) during periods of considerable currency weakness. This is one way in which one can look to boost profits from the markets.
27 November 2019: Silly season is back for the South African Rand
The recent volatility in the Rand shows is that time of the year. Silly season is upon us as traders look to make a last few bucks before the December holidays one can expect large scale movements over short periods of time not only in the South African currency but also in its stock market. Sit back and enjoy the ride.
5 November 2019: Rand remains unpredictable and volatile
They say there are only two certainties in life, and they are death and taxes. We believe we can add a third. The South African Rand will always be volatile. The South African Rand is prone to large scale swings over very short periods of time, and in a lot of the cases it seems to be knee jerk reactions to market news which sees strong selling or buying and then a reversal after a short period of time. Sure its fun for traders but the volatile Rand does no one any favours. Makes importers and exporters jobs harder when looking to hedge against currency risks or buying or selling products off shore when one is never sure where exactly the currency is heading towards.
20 September 2019: Peregrine Treasury services overview of the Rand and week ahead
South African markets will be closed on Tuesday to celebrate Heritage Day, while PPI is due for release on Thursday. US GDP is sure to make some waves, with a quarterly growth rate of 2% anticipated by markets. The GDP will give us an indication of the risk of a recession as well as provide guidance regarding future interest rate strategies by the Fed.
The rand held its ground rather well, until Trump’s impatience came to the fore in the trade wars. The ZAR weakened up to 1% at one stage in the overnight session, largely driven by some irresponsible language from the Whitehouse. Washington threatened 50-100% tariffs on Chinese goods should a trade agreement not be reached rapidly.
It had been a rather uneventful day yesterday as SARB kept rates unchanged, in line with market expectation. With the local unit trading largely rangebound over the past week, the risk of a negative event remains a threat to the rand, as we saw last night. The rand is heading towards a leg lower with a range of R14.60 to R14.86 remaining intact for the time being as we prepare for US GDP next week and the SA midterm budget October. The midterm budget is likely to set the tone for the Moody’s rating announcement due to take place in November, with markets largely expecting the rating to remain unchanged while the outlook will be adjusted to negative. Escalations in the Saudi/Iran tension can see the risk appetite rapidly evaporate, holding risks for emerging markets, including the rand. The rand started the day trading at R14.79/$, R16.35/€, R18.55/£.
The rand held its ground rather well, until Trump’s impatience came to the fore in the trade wars. The ZAR weakened up to 1% at one stage in the overnight session, largely driven by some irresponsible language from the Whitehouse. Washington threatened 50-100% tariffs on Chinese goods should a trade agreement not be reached rapidly.
It had been a rather uneventful day yesterday as SARB kept rates unchanged, in line with market expectation. With the local unit trading largely rangebound over the past week, the risk of a negative event remains a threat to the rand, as we saw last night. The rand is heading towards a leg lower with a range of R14.60 to R14.86 remaining intact for the time being as we prepare for US GDP next week and the SA midterm budget October. The midterm budget is likely to set the tone for the Moody’s rating announcement due to take place in November, with markets largely expecting the rating to remain unchanged while the outlook will be adjusted to negative. Escalations in the Saudi/Iran tension can see the risk appetite rapidly evaporate, holding risks for emerging markets, including the rand. The rand started the day trading at R14.79/$, R16.35/€, R18.55/£.
13 September 2019: Peregrine Treasury services overview of the Rand and week ahead
The week ahead will see the focus shift toward the interest decision by the Federal Reserve, as well as South Africa’s Reserve Bank’s Monetary Policy Commission (MPC), taking place on the 18th and 19th of September respectively. From a data perspective the greater investor should keep an eye on Chinese and US production numbers, while CPI numbers from South Africa’s point-of-view will assist in setting the tone for the MPC interest rate decision.
With the rand managing to break below key technical levels this week, a leg lower in terms of range becomes applicable, with a new range of R14.50 - R14.70 against the US dollar being anticipated. The rand started the day trading at R14.59/$, R16.15/€ and R18.01/£
With the rand managing to break below key technical levels this week, a leg lower in terms of range becomes applicable, with a new range of R14.50 - R14.70 against the US dollar being anticipated. The rand started the day trading at R14.59/$, R16.15/€ and R18.01/£
6 September 2019: Peregrine Treasury services overview of the Rand and week ahead
As always, a close eye should be kept on the global environment, with focus mainly being directed toward a few key elements
Locally, the situation on the ground can very-easily spill over in to a Pan African conflict, as one may start to see retaliation by foreigner’s against South African businesses throughout the rest of Africa starting to unfold - incidents have already been recorded in Nigeria and Zambia. The week ahead will see the release of U.K. GDP and unemployment numbers, while the US is set to release JOLTS job opening numbers, inflation and retail sales figures. Locally, one will see the release of Q3 business confidence numbers. The rand can be expected to remain below R15.00, against the US dollar, for the time being, however, any escalation of tension could see the local currency rapidly losing ground once again. The tone of the Fed on Friday evening will also determine the landscape of markets, heading into the new week. The rand started the day trading at R14.87/$, R16.41/€ and R18.32/£
Read the full Peregrine Treasury Services market wrap here
- Trade dynamics
- Global growth expectations; and
- Brexit
Locally, the situation on the ground can very-easily spill over in to a Pan African conflict, as one may start to see retaliation by foreigner’s against South African businesses throughout the rest of Africa starting to unfold - incidents have already been recorded in Nigeria and Zambia. The week ahead will see the release of U.K. GDP and unemployment numbers, while the US is set to release JOLTS job opening numbers, inflation and retail sales figures. Locally, one will see the release of Q3 business confidence numbers. The rand can be expected to remain below R15.00, against the US dollar, for the time being, however, any escalation of tension could see the local currency rapidly losing ground once again. The tone of the Fed on Friday evening will also determine the landscape of markets, heading into the new week. The rand started the day trading at R14.87/$, R16.41/€ and R18.32/£
Read the full Peregrine Treasury Services market wrap here
2 September 2019: Peregrine Treasury Services overview of the Rand and the week ahead
As always, the investor should remain cognizant of the greater global tussle overshadowing general market sentiment. Even with China’s spokesman for China’s Ministry of Commerce, Gao Feng, announcing that China would prefer to address the trade war in a more calm and respectable manner, not one soul on this planet could possibly comprehend the impact one little tweet out of Trump’s Twitter account could have on the markets. In 2019, one seemingly finds oneself in an era where a social media platform may actually be the foundation to the way future policies are written and built upon – quite a scary thought. The rand is likely to remain range-bound over the next trading week with its key upper and lower levels, against the US dollar, being R15.25 and R15.40. The rand started the day trading at R15.33/$, R16.94/€ and R18.69/£
23 August 2019: Peregrine Treasury Services overview of the Rand and the week ahead
We can assume that the currency market volatility is here to stay, while performance will largely be event driven. GDP data due for release from the US will be a highlight, as it will provide us with a clearer picture of the growth trajectory of the US, as well as provide us with guidance in terms of US interest rates. Locally we will turn our attention to the local trade balance for July. While the rand has managed to break below R15.20, and started the move to a leg stronger, our long term view remains biased towards a weaker rand. In the short and medium term, however, the rand could see a retracement to the R14.65 mark, should it manage to muster enough momentum. We remain reliant on global risk sentiment to determine direction of the currency, while local elements merely dictates the speed at which it moves in the determined direction. The rand started the day trading at R15.33/$, R16.87/€ and R18.64/£
Read the full Peregrine treasury services market wrap here
Read the full Peregrine treasury services market wrap here
16 August 2019: Peregrine Treasury Services overview of the Rand and the week ahead
With a weakening of over 10%, against the US dollar over the past two weeks, the South African rand is considered to be oversold, however, one shouldn’t brace for a recovery just yet. Local fundamentals, slowing global growth and geopolitical tension mean a perfect storm. The rand remains in treacherous terrain, with a sovereign credit rating downgrade considered to be imminent. Recognising the negative signs, foreigners have sold a net R14.4bn SA bonds so far in August – equal to R1.8bn a day A close eye should be kept on global and local data, as well as the geopolitical landscape that continues to set the tone for risk appetite. The rand starts the day off at R15.22 per US dollar, R16.91 per euro, R18.41 per British pound and R4.30 to the Israeli new shekel. The rand’s expected trading range for the upcoming week is fairly wide, given the current volatility, between R15.10 and R15.48
Read the full Peregrine Treasury Services World Markets wrap here
Read the full Peregrine Treasury Services World Markets wrap here
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12 August 2019: Local politics weighs on Rand
JOHANNESBURG (Reuters) - South Africa's rand was slightly weaker early on Monday, giving up small gains that had enabled it to pull back from an 11-month low as political uncertainty and a bleak economic outlook continued to weigh. At 0630 GMT, the rand was 0.2% weaker at 15.2925 per dollar compared to Friday's close of 15.2625. The rand plunged to 15.3100 on Wednesday, its lowest level since September 2018, with weak data, worries about the impact on the economy of heavily indebted state-owned energy firm Eskom and negative commentary from credit rating agencies piling pressure on the currency.
"The long-term objective is still the 2016 highs of 17.9000 but the more immediate target will be the 2018 highs of 15.6950, which could materialise this week," Standard Bank's chief trader Warrick Butler said in a note. "Volatility has of course picked up massively over the last three weeks and the rand is now officially the worst performing currency globally since this mess started in the middle of July." President Cyril Ramaphosa won a court case against the anti-corruption watchdog on Thursday over a matter concerning ally and state firms minister Pravin Gordhan, ahead of a battle over findings against the president himself. On Monday the High Court in Pretoria will hear an application by Ramaphosa for an urgent interim interdict blocking Public Protector Busisiwe Mkhwebane's report that found wrongdoing linked to donations to his 2017 campaign for the African National Congress presidency. Broader concerns about emerging markets and trade tensions between the United States and China have added to the rand selloff. Confusion around a possible resolution lingered after U.S. President Donald Trump said on Friday he was not ready to make a deal with China and called a September round of trade talks into question.
Original article obtained from Sharenet
"The long-term objective is still the 2016 highs of 17.9000 but the more immediate target will be the 2018 highs of 15.6950, which could materialise this week," Standard Bank's chief trader Warrick Butler said in a note. "Volatility has of course picked up massively over the last three weeks and the rand is now officially the worst performing currency globally since this mess started in the middle of July." President Cyril Ramaphosa won a court case against the anti-corruption watchdog on Thursday over a matter concerning ally and state firms minister Pravin Gordhan, ahead of a battle over findings against the president himself. On Monday the High Court in Pretoria will hear an application by Ramaphosa for an urgent interim interdict blocking Public Protector Busisiwe Mkhwebane's report that found wrongdoing linked to donations to his 2017 campaign for the African National Congress presidency. Broader concerns about emerging markets and trade tensions between the United States and China have added to the rand selloff. Confusion around a possible resolution lingered after U.S. President Donald Trump said on Friday he was not ready to make a deal with China and called a September round of trade talks into question.
Original article obtained from Sharenet
7 August 2019: PSG reports that Moody's comments hurt the Rand
The local currency suffered some late afternoon losses on Tuesday after Moody’s stated that “Eskom financial results is highlighted as an unsustainable capital structure and is in need of an urgent turnaround.” At 19h45, the rand traded R14.98 against the dollar.
Read the full PSG update here
Read the full PSG update here
6 August 2019: Rand still on track to hit R15/$
The rand was still on track to touch the R15.00 mark on Tuesday morning amid the intensifying US/China Trade War. Treasury Partner at Peregrine Treasury Solutions, Bianca Botes said, "The trade war is once more in full swing and escalating by the day. Yesterday saw Washington label China as a currency manipulator, causing the dollar to soar against the Chinese yuan," she said.
"The rand managed to trade fairly flat throughout the day, following its initial move to above R14.90/$, witnessed in early morning trade. While the rand continues to feel the pinch, this is not the time to panic-buy foreign currency: a cool down in the global environment could see the local unit retrace to the R14.50 mark in the short term. "It’s a quiet day on the data front with JOLTS job openings in the US being the only noteworthy item set in the calendar for release today.The rand starts the day at R14.92/$, R16.74/€ and R18.12/£.The next target still remains R15.00, with all eyes on the next move that will be made in the trade war."
Update obtained from Fin24.com
"The rand managed to trade fairly flat throughout the day, following its initial move to above R14.90/$, witnessed in early morning trade. While the rand continues to feel the pinch, this is not the time to panic-buy foreign currency: a cool down in the global environment could see the local unit retrace to the R14.50 mark in the short term. "It’s a quiet day on the data front with JOLTS job openings in the US being the only noteworthy item set in the calendar for release today.The rand starts the day at R14.92/$, R16.74/€ and R18.12/£.The next target still remains R15.00, with all eyes on the next move that will be made in the trade war."
Update obtained from Fin24.com
5 August: Peregrine Treasury Services prediction for the Rand for the week
The rand is expected to remain under pressure, given the rally in the US dollar on the back of a less dovish Fed. With the Fed announcement out of the way, we will see local fundamentals, as well as economic data, become more relevant once again in the pricing of currencies. The picture, locally, remains a dismal one. Geopolitical factors will also make its way in to the spotlight, so investors should be sure to keep a close eye on President Trump’s Twitter account. With the new tariffs due to be imposed on $300bn worth of Chinese goods on 1 September 2019,the picture is once again looking dim for emerging markets.
Some of the local data, due for release next week, includes the Standard Bank PMI numbers for July as well as mining, gold and manufacturing production. China is up for a busy data week, with focus falling on imports and exports year-on-year, while the US is due to release numerous manufacturing data.
The rand broke through the R14.50 mark with relative ease, signaling a leg weaker with R14.80 as the next target . On Friday morning the rand would’ve set the investor back R14.60 per US dollar, R16.19 a euro and R17.70 a British pound.
Some of the local data, due for release next week, includes the Standard Bank PMI numbers for July as well as mining, gold and manufacturing production. China is up for a busy data week, with focus falling on imports and exports year-on-year, while the US is due to release numerous manufacturing data.
The rand broke through the R14.50 mark with relative ease, signaling a leg weaker with R14.80 as the next target . On Friday morning the rand would’ve set the investor back R14.60 per US dollar, R16.19 a euro and R17.70 a British pound.
1 August 2019: Rand struggles after FED warns against expecting long easing cycle
The dollar climbed in Asian trading after Federal Reserve Chairman Jerome Powell warned against expecting a lengthy US monetary easing cycle. Stocks slid by less than seen on Wall Street, with Japanese shares in particular helped by the yen’s decline. Japanese benchmarks opened sharply lower before recouping those losses as the yen slid. US stock futures were little changed after an early drop, though European futures declined. The S&P 500 Index lost 1.1%, though closed off of its lows after Powell also said that he wasn’t ruling out a sequel to Wednesday’s cut.
Ten-year Treasuries gave up gains made after the Fed’s meeting, where policymakers also brought forward their plan to abandon the run-down in the bond portfolio. Hong Kong and Chinese underperformed. Oil prices tumbled. The dollar hit a two-month high.
Article obtained from Fin24.com. Read original here
Ten-year Treasuries gave up gains made after the Fed’s meeting, where policymakers also brought forward their plan to abandon the run-down in the bond portfolio. Hong Kong and Chinese underperformed. Oil prices tumbled. The dollar hit a two-month high.
Article obtained from Fin24.com. Read original here
31 July 2019: South Africa's rand steadies as Fed decision masks economic woes
JOHANNESBURG (Reuters) - South Africa's rand gained early on Wednesday, with a likely cut in interest rates by the U.S. Federal Reserve taking the spotlight away from local economic troubles.
At 0640 GMT, the rand was up 0.28% at 14.1650 from a close of 14.2050 overnight in New York. Cash-strapped power utility Eskom said on Tuesday it expected a loss of around 20 billion rand ($1.4 billion) in the 2019/20 financial year. Lack of improvement in its financial position indicated it would be unable to meet its obligations without government help. Last week, rating agencies Fitch and Moody's warned about increasing fiscal pressure after government said it would give Eskom an extra 59 billion rand, pushing the rand to a four-week low of 14.3150. "There are many in the market questioning why the rand is not blowing off more than it has. Eskom is producing major losses, there are bailouts galore, and the budget deficit is blowing out to 6% or more," said ETM Analytics in a note.
On Tuesday, data showed second-quarter unemployment rose to 29% from 27.6% in the first quarter, an 11-year high, underscoring the country's fragile growth outlook. But early on Wednesday markets were looking ahead to the Fed rate decision later in the session. Markets are pricing in a 25-basis-point cut and waiting for clues on whether more will follow. Yields on the benchmark 10-year bond were steady at 8.305% The South African Revenue Service publishes June trade balance figures at 1200 GMT, the only top-tier data release for the day.
(Reporting by Mfuneko Toyana, editing by Larry King)
This update was obtained from Sharenet. Read the original here
At 0640 GMT, the rand was up 0.28% at 14.1650 from a close of 14.2050 overnight in New York. Cash-strapped power utility Eskom said on Tuesday it expected a loss of around 20 billion rand ($1.4 billion) in the 2019/20 financial year. Lack of improvement in its financial position indicated it would be unable to meet its obligations without government help. Last week, rating agencies Fitch and Moody's warned about increasing fiscal pressure after government said it would give Eskom an extra 59 billion rand, pushing the rand to a four-week low of 14.3150. "There are many in the market questioning why the rand is not blowing off more than it has. Eskom is producing major losses, there are bailouts galore, and the budget deficit is blowing out to 6% or more," said ETM Analytics in a note.
On Tuesday, data showed second-quarter unemployment rose to 29% from 27.6% in the first quarter, an 11-year high, underscoring the country's fragile growth outlook. But early on Wednesday markets were looking ahead to the Fed rate decision later in the session. Markets are pricing in a 25-basis-point cut and waiting for clues on whether more will follow. Yields on the benchmark 10-year bond were steady at 8.305% The South African Revenue Service publishes June trade balance figures at 1200 GMT, the only top-tier data release for the day.
(Reporting by Mfuneko Toyana, editing by Larry King)
This update was obtained from Sharenet. Read the original here
26 July 2019: Peregrine Treasury services sees Rand summary sees Rand at R15/$1 long term
The rand traded within a tight range this week, with the next catalyst events that could give direction to the currency, in all likelihood, being the impending interest rate cut by the Fed, following the interest rate announcement by the ECB, due to take place next week. While the rand continues on a stable footing, even after the depreciation of over 1.6% on Thursday, against major currencies in the short term, our projections for the longer term indicates a move toward the R15.00 mark, against the US dollar.
Read the full Peregrine Treasury Services weekly review here
Read the full Peregrine Treasury Services weekly review here
12 July 2019: Peregrine Treasury services sees Rand potentially heading to R13.80/$
With the current momentum, the rand is likely to test the R13.80 mark, while local interest rate cuts could see the rand trade toward the upper band of R14.05, provided that the global backdrop remains the same. On Friday morning the rand would’ve set the investor back R13.92 per US dollar, R15.70 a euro and R17.47 a British pound.
Read the full Peregrine Treasury Services Weekly review here
Read the full Peregrine Treasury Services Weekly review here
11 July 2019: Rand breaks through R14/$ again as FED hints at rate cut in USA
The rand strengthened to under R14/$ overnight after Fed Chairperson Jerome Powell hinted the bank may be preparing to cut interest rates.
"[Powell] surprised markets with an unexpectedly dovish address to congress [on Wednesday], following the solid employment data from the economy," said Bianca Botes of Peregrine Treasury Solutions in a morning note to clients. "The testimony quickly saw the rand strengthening by close to 0.8% in the afternoon, with the rally continuing in the overnight session to break below R14.00/$." The local currency was trading at R13.95 at 08:15 on Thursday morning, its strongest level since late April 2019. "The rand is likely to lean towards more strength with the R13.80/$ level now becoming a realistic target."
This update was obtained from Fin24.com
"[Powell] surprised markets with an unexpectedly dovish address to congress [on Wednesday], following the solid employment data from the economy," said Bianca Botes of Peregrine Treasury Solutions in a morning note to clients. "The testimony quickly saw the rand strengthening by close to 0.8% in the afternoon, with the rally continuing in the overnight session to break below R14.00/$." The local currency was trading at R13.95 at 08:15 on Thursday morning, its strongest level since late April 2019. "The rand is likely to lean towards more strength with the R13.80/$ level now becoming a realistic target."
This update was obtained from Fin24.com
9 July 2019: Rand range bound between R14.10 and R14.25
The rand is likely to remain in tight ranges today, says TreasuryONE's Andre Botha. By 10:27, the rand was changing hands at R14.20 to the greenback. "The rand seems fairly comfortable between R14.1000 and R14.2500 with direction giving data at a minimum at the moment. "With the data cupboard empty we expect much of the day to be the same as yesterday with the rand staying in tight ranges. The risk for the market will start from tomorrow evening with the release of the FOMC minutes of the June meeting and Fed Chairman Powell's testimony to Congress.
"The market will watch these two events for an indication of where the Fed's thinking is in relation to their expected rate cut. On the sentiment side, we have seen stock markets under pressure which normally is not a good sign for risky assets and could be an indication that sentiment is changing.
"This could mean that we could see the rand sliding a little ... as we await news from abroad which could give the market some direction."
Update obtained from Fin24.com
"The market will watch these two events for an indication of where the Fed's thinking is in relation to their expected rate cut. On the sentiment side, we have seen stock markets under pressure which normally is not a good sign for risky assets and could be an indication that sentiment is changing.
"This could mean that we could see the rand sliding a little ... as we await news from abroad which could give the market some direction."
Update obtained from Fin24.com
8 July 2019: Rand above the R14/$ again
So in what turned out to be a very short stint for the South African rand below the $14 against the US dollar the Rand is now trading well above R14/$ after strong jobs numbers in the United States surprised market participants and it reduced the likelihood of an interest rate cut by the Federal Reserve (FED) at their next meeting. This saw strength in the US dollar return which in turn hit the South African Rand
4 July 2019: Rand below R14/$ for first time in months
The rand strengthened to below R14/$ on Thursday morning, its best level against the greenback since late April. The local currency opened the day's trade at R14.05/$ and was trading at R13.95/$ at 10:05, up 0.7% on the day. Andre Botha, a senior dealer at TreasuryONE, said in a morning note to clients that the rand's strength could be linked to talk about rates in the US and the EU. "One reason for the rand and emerging market performance this morning could be the growing speculation that the Fed and European Central Bank will cut rates sooner rather than later. This could see yield-seeking behaviour being in the order of the day.
Botha said that due to the US celebrating the 4th of July public holiday, major currency moves were unlikely. On Wednesday US President Donald Trump had tweeted that Europe and China were playing a “big currency manipulation game”. Botha noted the rand seemed to be defying the rhetoric for now, which would "normally equate to some uncertainty in the markets".
This update was obtained from Fin24.com
Botha said that due to the US celebrating the 4th of July public holiday, major currency moves were unlikely. On Wednesday US President Donald Trump had tweeted that Europe and China were playing a “big currency manipulation game”. Botha noted the rand seemed to be defying the rhetoric for now, which would "normally equate to some uncertainty in the markets".
This update was obtained from Fin24.com
28 June 2019: Peregrine Treasury services weekly wrap of the Rand
The South African rand started the week off remaining extremely flat, to trade in a mere 10 cent range, however as the week unfolded, and hope of a trade deal between the US and China increased, the rand managed to rally against the Greenback(US dollar) and all other major currencies. While the current improved risk sentiment and anticipated interest rate decreases by the Fed are all playing in the favor of the rand, one shouldn’t take these strong levels for granted. The current rand strength is largely driven by global events and a weak dollar, while local fundamental elements remain weak. The weakening trend in the US dollar, should it continue, could see the rand break to levels below R14.00 in the short term, while one should still consider rand weakness over the longer run.
Read the full Peregrine Treasury Services weekly markets wrap here
Read the full Peregrine Treasury Services weekly markets wrap here
26 June 2019: Rand compared to Turkish Lira and Chilean Peso
Yesterday we compared the South African exchange rate, the Rand to that of the Turkish Lira and the Chilean Peso. And while the Rand has lost about 10% of its value against the US dollar over the last 12 months, South African's should be happy our currency didn't perform like the Turkish Lira, which lost almost 27% of its value against the US dollar in the last 12 months. Read more regarding the Rand compared to Lira and Peso here.
24 June 2019: Rand firmer as US dollar is under pressure
The rand is a touch firmer as the dollar remains under pressure, says Peregrine Treasury's Bianca Botes. By 10:41, the rand was changing hands at R14.28 to the greenback. "The dollar remains subdued, fuelling the current firmer levels of the rand. The attention now shifts to G20 taking place in Osaka from June 27 to 29 where the two presidents, Xi and Trump are set to engage on trade agreements, although markets are not too optimistic that a conclusion will be reached. "The ZAR is likely to continue targeting the R14.40 mark as the euro blows off steam from its rally to 3-month highs."
Update above obtained from Fin24.com
While the Rand has made a steady comeback in recent weeks, unless business friendly policies are implemented by government as a matter of urgency we cannot see the Rand holding on to these gains, as we showed in our JSE trading statistics for the week ended 21 June foreigners were massive sellers of JSE listed shares, an indication that they dont expect strong financial results and strong share price performances in coming weeks and months
Update above obtained from Fin24.com
While the Rand has made a steady comeback in recent weeks, unless business friendly policies are implemented by government as a matter of urgency we cannot see the Rand holding on to these gains, as we showed in our JSE trading statistics for the week ended 21 June foreigners were massive sellers of JSE listed shares, an indication that they dont expect strong financial results and strong share price performances in coming weeks and months
21 June 2019: After firming all week, rand slightly weaker in wake of SONA
After firming 3% against the dollar during the week, the rand was trading slightly weaker on Friday morning in the wake of President Cyril Ramaphosa's State of the Nation address. The local currency opened trade at R14.33 to the greenback and was changing hands at R14.38 at 08:30, down 0.3%.
"All events favoured the local unit this week, ranging from a dovish US Federal Reserve to clear optimism from ratings agency Moody’s with regards to the outlook of the local economy," said Bianca Botes of Peregrine Treasury Solutions in a note to clients. Botes said that on the international front, the key data event for the week was the Federal Reserve interest rate announcement on Wednesday.
"While the Federal Reserve did not cut interest rates this time around, the dovish stance by the Fed was certainty reiterated, implying that a rate cut by as much as 50bps could be on the cards towards the end of the year." Botes said that while the tone of Ramaphosa's address on Thursday evening was upbeat, it "left many South Africans with perhaps even more questions than before the address". "The country remains in the dark as to what exactly the turnaround plan for the economy will entail."
NKC African Economics, in a morning note to clients, described Ramaphosa's address as competent. "Expectations had been so high – perhaps too high – that he would add some spark to his new dawn. Given the political and factional tightrope he must walk, the financial and economic constraints, the shattered country he inherited less than two years ago and a deep hunger among South Africans of all hues for hope and belief that change was imminent, his speech last night was competent, solid and often masterful but still felt a little like the president lacked conviction," it said
Original article obtained from Fin24.com
"All events favoured the local unit this week, ranging from a dovish US Federal Reserve to clear optimism from ratings agency Moody’s with regards to the outlook of the local economy," said Bianca Botes of Peregrine Treasury Solutions in a note to clients. Botes said that on the international front, the key data event for the week was the Federal Reserve interest rate announcement on Wednesday.
"While the Federal Reserve did not cut interest rates this time around, the dovish stance by the Fed was certainty reiterated, implying that a rate cut by as much as 50bps could be on the cards towards the end of the year." Botes said that while the tone of Ramaphosa's address on Thursday evening was upbeat, it "left many South Africans with perhaps even more questions than before the address". "The country remains in the dark as to what exactly the turnaround plan for the economy will entail."
NKC African Economics, in a morning note to clients, described Ramaphosa's address as competent. "Expectations had been so high – perhaps too high – that he would add some spark to his new dawn. Given the political and factional tightrope he must walk, the financial and economic constraints, the shattered country he inherited less than two years ago and a deep hunger among South Africans of all hues for hope and belief that change was imminent, his speech last night was competent, solid and often masterful but still felt a little like the president lacked conviction," it said
Original article obtained from Fin24.com
7 June 2019: SARB mandate controversy affects the Rand heavily
With rogue ANC top 6 member, the SG of the ANC, Ace Magashule announcing that it has been decided that the South African Reserve Bank's mandate will be changed to include a focus on growth and employment and the fact that 'quantity easing' measures were discussed at ANC lekgotla sent the Rand nose diving and it broke through the R15/$1 level. Since then multiple ANC members including the current Minister of Finance stating that no such decision was taken, but the damage has been done and it seems that Ace says whatever he wants without any reprimand or repercussions for his actions. Below a summary from the weekly Peregrine Treasury Services market wrap discussing the Rand
The rand has a weakening bias, but further downside risks would come from:
The rand has a weakening bias, but further downside risks would come from:
- A downgrade by Moody’s
- Increased global trade tension
- Anticipated decrease in interest rates by the SARB
- Continuous policy uncertainty from local government
- Expectations that the Fed will decrease interest rates
- President Ramaphosa addressing the SARB mandate issue head on and provide some clarity and certainty
- Decrease in global trade tensions
4 June 2019: Rand tanks as South Africa's GDP declines substantially in Q1:2019
After the release today (at 11:30) of South Africa's latest GDP numbers, the economic growth for the first quarter of 2019 came in at -3.2%. And the Rand tanked against the US dollar. From the image below one can clearly see the sharp spike in the Rand amount paid per US dollar after the release of South Africa's latest GDP numbers.
Part of the reason for the weakening of the exchange rate after the GDP announcement is the fact that low to now growth countries tend to get little in terms of investments. So the rest of the world sees little to no growth in SA and will invest their money in higher growth countries. Another potential reason for the weakening of the exchange rate after the release of the GDP numbers is the fact that market participants are now strongly pricing in a interest rate cut in July 2019 by the South African Reserve Bank (SARB) Monetary Policy Committee (MPC), to assist in growing the ailing South African economy. While SARB hinted at 25 basis point interest rate cut in late 2020 or early 2021, the weak economic growth numbers and the commitment by the ANC lekgotla to expand the SARB's mandate to include economic growth and employment as part of its expanded mandate including stable prices (via the current inflation targeting policy).
30 May 2019: President Cyril Ramaphosa cabinet gives Rand a boost
The article below, obtained from Fin24.com discusses President Ramaphosa's latest slimmed down cabinet and the Rand's reactions to it.
Article Starts
President Cyril Ramaphosa took a step toward putting SA on a growth path and fighting corruption by naming a slimmed-down Cabinet that retained Finance Minister Tito Mboweni and Public Enterprises Minister Pravin Gordhan in their posts. The reappointment of David Mabuza, who’s been implicated in a string of scandals, as his deputy reflects the political trade-offs he’s had to make due to his tenuous hold on the deeply divided African National Congress. Since securing a five-year term when the ANC won a parliamentary majority on May 8, Ramaphosa, has vowed to clean up a government discredited under Jacob Zuma.
The rand extended gains made overnight, strengthening 0.2% to R14.63/$ per dollar by 07:40.
“He really tried cleaning up,” said Sethulego Matebesi, a political analyst at the University of the Free State. “He has done extremely well under the circumstances. This is a team that will give us a new sense of hope.”
The new executive comprises 28 ministers, from 36 previously. The mineral resources and energy ministries were combined and will fall under Gwede Mantashe, who previously held the mining portfolio and had helped heal a rift with the industry. There was no place for Jeff Radebe, the longest-serving Cabinet minister, who had headed the energy portfolio.
New faces included Jackson Mthembu, the ANC’s former chief whip in Parliament, as a minister in the presidency, lawyer Ronald Lamola as minister of justice and correctional services, and Patricia de Lille, the former mayor of Cape Town and leader of the opposition Good party, as public works minister.
Balancing ActMabuza faced accusations that he helped rig state tenders and had his opponents silenced and even assassinated while he was premier of Mpumalanga - allegations that were described in a New York Times expose last year. Mabuza denies wrongdoing and has never been charged and was cleared of wrongdoing by the ANC’s integrity committee. Ramaphosa initially favored Naledi Pandor or Lindiwe Sisulu to be his deputy, but gave the post to Mabuza, who won the deputy leadership of the ruling party in December 2017 and helped him secure the top post. Sisulu was named minister of human settlements, water and sanitation, while Pandor, formerly the minister of higher education, took over from Sisulu as minister of international relations. Mabuza may be less of a threat to Ramaphosa as deputy president than he would have been had he ended up angry or frustrated in a full-time ANC position, said Susan Booysen, director of research at the Mapungubwe Institute for Strategic Reflection.
“Ramaphosa can only perform his cleanup if he’s not sabotaged by own party,” she said. “This is an intricate balancing act.” Ramaphosa did replace Bathabile Dlamini, the head of the ANC’s women’s league and former women’s minister, after the nation’s highest court accused her of perjury. Nomvula Mokonyane, previously the environment minister who was accused in a judicial probe of taking bribes, also didn’t make the cut. Both women deny wrongdoing. Finance Minister Mboweni kept his position, despite opposition from Cosatu that object to his support for selling off some loss-making state companies and spending reductions. His deputy is David Masondo. In a nod to the unions, Ramaphosa named Ebrahim Patel, an ex-union leader as minister of trade, industry and economic development even though he never secured election as an MP.
Article ends
The original article can be found here
Article Starts
President Cyril Ramaphosa took a step toward putting SA on a growth path and fighting corruption by naming a slimmed-down Cabinet that retained Finance Minister Tito Mboweni and Public Enterprises Minister Pravin Gordhan in their posts. The reappointment of David Mabuza, who’s been implicated in a string of scandals, as his deputy reflects the political trade-offs he’s had to make due to his tenuous hold on the deeply divided African National Congress. Since securing a five-year term when the ANC won a parliamentary majority on May 8, Ramaphosa, has vowed to clean up a government discredited under Jacob Zuma.
The rand extended gains made overnight, strengthening 0.2% to R14.63/$ per dollar by 07:40.
“He really tried cleaning up,” said Sethulego Matebesi, a political analyst at the University of the Free State. “He has done extremely well under the circumstances. This is a team that will give us a new sense of hope.”
The new executive comprises 28 ministers, from 36 previously. The mineral resources and energy ministries were combined and will fall under Gwede Mantashe, who previously held the mining portfolio and had helped heal a rift with the industry. There was no place for Jeff Radebe, the longest-serving Cabinet minister, who had headed the energy portfolio.
New faces included Jackson Mthembu, the ANC’s former chief whip in Parliament, as a minister in the presidency, lawyer Ronald Lamola as minister of justice and correctional services, and Patricia de Lille, the former mayor of Cape Town and leader of the opposition Good party, as public works minister.
Balancing ActMabuza faced accusations that he helped rig state tenders and had his opponents silenced and even assassinated while he was premier of Mpumalanga - allegations that were described in a New York Times expose last year. Mabuza denies wrongdoing and has never been charged and was cleared of wrongdoing by the ANC’s integrity committee. Ramaphosa initially favored Naledi Pandor or Lindiwe Sisulu to be his deputy, but gave the post to Mabuza, who won the deputy leadership of the ruling party in December 2017 and helped him secure the top post. Sisulu was named minister of human settlements, water and sanitation, while Pandor, formerly the minister of higher education, took over from Sisulu as minister of international relations. Mabuza may be less of a threat to Ramaphosa as deputy president than he would have been had he ended up angry or frustrated in a full-time ANC position, said Susan Booysen, director of research at the Mapungubwe Institute for Strategic Reflection.
“Ramaphosa can only perform his cleanup if he’s not sabotaged by own party,” she said. “This is an intricate balancing act.” Ramaphosa did replace Bathabile Dlamini, the head of the ANC’s women’s league and former women’s minister, after the nation’s highest court accused her of perjury. Nomvula Mokonyane, previously the environment minister who was accused in a judicial probe of taking bribes, also didn’t make the cut. Both women deny wrongdoing. Finance Minister Mboweni kept his position, despite opposition from Cosatu that object to his support for selling off some loss-making state companies and spending reductions. His deputy is David Masondo. In a nod to the unions, Ramaphosa named Ebrahim Patel, an ex-union leader as minister of trade, industry and economic development even though he never secured election as an MP.
Article ends
The original article can be found here
29 May 2019: Rand continues its latest rot
The South African Rand has continued its steady decline of recent days and according to the Reserve Bank's daily rate taken at about 10am every day (and the rates we use on the chart at the top of this page, the Rand was trading at R14.86 to the US Dollar today, 29 May 2019). Below an article on Fin24 regarding the Rand's latest woes.
Rand plunges in early trade amid Cabinet uncertainty, trade war worries
The rand, which fell by 2% against the dollar on Tuesday, fell by another 1% against the greenback in early trade on Wednesday, as questions around President Cyril Ramaphosa's Cabinet and global trade war concerns continued to caused what an analyst described as a "tornado" of risks. The local currency opened the day at R14.73/$ and was trading at R14.88/$ at 10:30, down 1% on the day. South Africans are still waiting for President Cyril Ramaphosa to announce his Cabinet, which may take place as soon as Wednesday. ANC deputy president David Mabuza was sworn in as an MP on Tuesday, paving the way for his possible reappointment as the country's deputy president.
Lukman Otunuga, a research analyst at FXTM, said in a note to clients that the local currency was facing a "tornado of different risks". "The rand does not like the headlines that David Mabuza is in the running to become deputy president," said Otunuga. "It is shaping up to be yet another rough, rocky and unpredictable trading week for financial markets as investors tussle with a number of different themes. Ongoing US-China trade developments, Brexit uncertainty and the return of drama over the Italian state budget are just some of the themes concerning investors," he said.
In a morning note to clients TreasuryONE said the rand would remain on the back foot in Wednesday and could fall below the R15/$ level.
The last time the rand ended a day's trade at below R15 to the greenback was in September 2018.
The original article can be found here
Rand plunges in early trade amid Cabinet uncertainty, trade war worries
The rand, which fell by 2% against the dollar on Tuesday, fell by another 1% against the greenback in early trade on Wednesday, as questions around President Cyril Ramaphosa's Cabinet and global trade war concerns continued to caused what an analyst described as a "tornado" of risks. The local currency opened the day at R14.73/$ and was trading at R14.88/$ at 10:30, down 1% on the day. South Africans are still waiting for President Cyril Ramaphosa to announce his Cabinet, which may take place as soon as Wednesday. ANC deputy president David Mabuza was sworn in as an MP on Tuesday, paving the way for his possible reappointment as the country's deputy president.
Lukman Otunuga, a research analyst at FXTM, said in a note to clients that the local currency was facing a "tornado of different risks". "The rand does not like the headlines that David Mabuza is in the running to become deputy president," said Otunuga. "It is shaping up to be yet another rough, rocky and unpredictable trading week for financial markets as investors tussle with a number of different themes. Ongoing US-China trade developments, Brexit uncertainty and the return of drama over the Italian state budget are just some of the themes concerning investors," he said.
In a morning note to clients TreasuryONE said the rand would remain on the back foot in Wednesday and could fall below the R15/$ level.
The last time the rand ended a day's trade at below R15 to the greenback was in September 2018.
The original article can be found here
28 May 2019: Rand slumps as David Mabuza was sworn in as MP today
To those looking for reasons why the Rand slumped to its worst levels in months, the following extract was obtained from Sharenet and discusses the Rand's reaction to the news that Deputy President David Mabuza has been sworn in as a member of parliament.
JOHANNESBURG, May 28 (Reuters) - South Africa's rand tumbled to its weakest in three weeks on Tuesday as deputy president David Mabuza was sworn in as a lawmaker after being cleared by the ruling African National Congress of bringing the party into disrepute. At 1700 GMT the rand was 2.15% weaker at 14.7350 per dollar, its weakest level since March 28, after opening at 14.4225, with news of Mabuza's swearing in adding to a risk-off tone globally after trade tensions resurfaced.
The move clears the way for 58-year-old Mabuza, an important ally of President Cyril Ramaphosa, to remain his deputy, but again throws a spotlight on corruption allegations that have hit the party's popularity. Investors are keen to see proof of Ramaphosa's clean governance pledge. Mabuza denies any wrongdoing, and has said he wants all the allegations levelled against him to be tested in a court of law. "The rand outperformed its EM peers last week after elections and was able to hold onto those gains because of the positive politics and expectations about the new cabinet," said BNP Paribas analyst Jeffrey Schultz.
"We've had delays to that announcement because of the Mabuza issue so that outperformance has been eroded. The market is anxious to see how small cabinet is going to be and what key appointments like the finance ministry are going to be." The ANC easily won this month's general election, but its vote dropped sharply due to anger over corruption scandals.
The full article can be found here.
JOHANNESBURG, May 28 (Reuters) - South Africa's rand tumbled to its weakest in three weeks on Tuesday as deputy president David Mabuza was sworn in as a lawmaker after being cleared by the ruling African National Congress of bringing the party into disrepute. At 1700 GMT the rand was 2.15% weaker at 14.7350 per dollar, its weakest level since March 28, after opening at 14.4225, with news of Mabuza's swearing in adding to a risk-off tone globally after trade tensions resurfaced.
The move clears the way for 58-year-old Mabuza, an important ally of President Cyril Ramaphosa, to remain his deputy, but again throws a spotlight on corruption allegations that have hit the party's popularity. Investors are keen to see proof of Ramaphosa's clean governance pledge. Mabuza denies any wrongdoing, and has said he wants all the allegations levelled against him to be tested in a court of law. "The rand outperformed its EM peers last week after elections and was able to hold onto those gains because of the positive politics and expectations about the new cabinet," said BNP Paribas analyst Jeffrey Schultz.
"We've had delays to that announcement because of the Mabuza issue so that outperformance has been eroded. The market is anxious to see how small cabinet is going to be and what key appointments like the finance ministry are going to be." The ANC easily won this month's general election, but its vote dropped sharply due to anger over corruption scandals.
The full article can be found here.
28 May 2019: Sino-US trade tensions hurts the Rand
The latest news regarding the South African Rand was obtained from Sharenet. See the original article here.
JOHANNESBURG (Reuters) - South Africa's rand weakened on Tuesday, falling more than 1% in early trade as Sino-U.S. trade tensions dampened market sentiment. At 0834 GMT, the rand traded at 14.5975 per dollar, 1.2% weaker than its New York close on Monday. In fixed income, the yield on the benchmark government bond due in 2026 added 8.5 basis points to 8.445%. On the stock market, both the Top-40 and the broader all-share index were down 0.3%.
JOHANNESBURG (Reuters) - South Africa's rand weakened on Tuesday, falling more than 1% in early trade as Sino-U.S. trade tensions dampened market sentiment. At 0834 GMT, the rand traded at 14.5975 per dollar, 1.2% weaker than its New York close on Monday. In fixed income, the yield on the benchmark government bond due in 2026 added 8.5 basis points to 8.445%. On the stock market, both the Top-40 and the broader all-share index were down 0.3%.
27 May 2019: Rand receives boost from EU elections
The news regarding the Rand below was obtained from Fin24.com. See original article here.
The rand received a boost from the EU election results, Peregrine Treasury Solutions's Bianca Botes said on Monday while all eyes are still on President Cyril Ramaphosa and his Cabinet announcement later this week. By 10:54, the rand was changing hands at R14.44 to the greenback. "The rand has received some assistance from the euro this morning, which has rebounded from a two-year low as EU parliament election results indicate that a pro-European Union majority remains.
"There is no critical data due for release today, as the US celebrates Memorial Day and UK businesses close for the spring bank holiday. "Larger focus remains on the US/China trade dynamic, with emerging markets remaining under pressure," she said. The rand was expected to trade between R14.32 and R14.48 for the day.
The rand received a boost from the EU election results, Peregrine Treasury Solutions's Bianca Botes said on Monday while all eyes are still on President Cyril Ramaphosa and his Cabinet announcement later this week. By 10:54, the rand was changing hands at R14.44 to the greenback. "The rand has received some assistance from the euro this morning, which has rebounded from a two-year low as EU parliament election results indicate that a pro-European Union majority remains.
"There is no critical data due for release today, as the US celebrates Memorial Day and UK businesses close for the spring bank holiday. "Larger focus remains on the US/China trade dynamic, with emerging markets remaining under pressure," she said. The rand was expected to trade between R14.32 and R14.48 for the day.
21 May 2019: Rand and other emerging market currencies on the back foot
The following was taken from Fin24's market live update regarding the latest movements of the Rand and SARB's expected move on interest rates and the impact it will have on the exchange rate. The original article can be found here.
Article starts
The rand weakened in early trade on Tuesday as uncertainty around US-China trade talks dampened demand for emerging markets currencies. By 12:20 the local currency had strengthened somewhat to trade at R14.41/$ after opening at R14.38 to the greenback.
Andre Botha, a senior dealer at TreasuryONE, said in a market update there is still a great deal of doubt about what the outcome of trade negotiations between the world's two largest economies will be. "This negative sentiment was echoed in equity markets with most of the major indices ending the session in the red," he said. With markets trying to offload risks, the rand could head to the R14.50/$ level, he warned.
Jameel Ahmad, global head of currency strategy & market research at FXTM, said emerging market currencies were in for a rough ride. "[...] recent tariff escalations from both sides suggest that emerging market currencies will continue to find themselves exposed to external uncertainties into the second half of 2019 at least," he said. Other factors that may impact the rand this week include the release of minutes from the US Federal Reserve Bank, the swearing in of SA's new Parliament and the possible inauguration of SA's new Cabinet.
The SA Reserve Bank's monetary policy committee, meanwhile, is expedited to keep the repo rate on hold on Thursday.
Article ends
For more regarding the South African Reserve Bank decision on interest rates, see our article that covered their latest monetary policy review presentation and their medium and longer term inflation expectations.
Article starts
The rand weakened in early trade on Tuesday as uncertainty around US-China trade talks dampened demand for emerging markets currencies. By 12:20 the local currency had strengthened somewhat to trade at R14.41/$ after opening at R14.38 to the greenback.
Andre Botha, a senior dealer at TreasuryONE, said in a market update there is still a great deal of doubt about what the outcome of trade negotiations between the world's two largest economies will be. "This negative sentiment was echoed in equity markets with most of the major indices ending the session in the red," he said. With markets trying to offload risks, the rand could head to the R14.50/$ level, he warned.
Jameel Ahmad, global head of currency strategy & market research at FXTM, said emerging market currencies were in for a rough ride. "[...] recent tariff escalations from both sides suggest that emerging market currencies will continue to find themselves exposed to external uncertainties into the second half of 2019 at least," he said. Other factors that may impact the rand this week include the release of minutes from the US Federal Reserve Bank, the swearing in of SA's new Parliament and the possible inauguration of SA's new Cabinet.
The SA Reserve Bank's monetary policy committee, meanwhile, is expedited to keep the repo rate on hold on Thursday.
Article ends
For more regarding the South African Reserve Bank decision on interest rates, see our article that covered their latest monetary policy review presentation and their medium and longer term inflation expectations.
17 May 2019: Roaring Rand
In their weekly market wrap Peregrine Treasury Services had the following to say regard the Rand and what lies ahead for it in the coming weeks.
The rand ends the week around 1.00% stronger against the US dollar, after starting the week off on the back foot. The broader range remains intact, with the rand struggling to muster enough momentum for a substantial break below the R14.15 mark. As carry trade continues to support the local unit, the right moves from government and, more specifically, President Ramaphosa, may see the rand head back toward its rally-targeting levels of around R13.80 against the US dollar- an opportunity that should be taken advantage of, given the view that the rand will come under pressure in the longer term as the structural woes weigh in. On Friday morning the rand would’ve set investors back R14.33 per Greenback, R16.01 a euro and R18.33 a British pound.
Read the full Peregrine Treasury Services weekly wrap here.
The rand ends the week around 1.00% stronger against the US dollar, after starting the week off on the back foot. The broader range remains intact, with the rand struggling to muster enough momentum for a substantial break below the R14.15 mark. As carry trade continues to support the local unit, the right moves from government and, more specifically, President Ramaphosa, may see the rand head back toward its rally-targeting levels of around R13.80 against the US dollar- an opportunity that should be taken advantage of, given the view that the rand will come under pressure in the longer term as the structural woes weigh in. On Friday morning the rand would’ve set investors back R14.33 per Greenback, R16.01 a euro and R18.33 a British pound.
Read the full Peregrine Treasury Services weekly wrap here.
16 May 2019: Ramaphosa's cabinet could determine direction of the Rand
The article below, as found on Moneyweb suggested that the cabinet President Ramaphosa announces could well determine the direction of the Rand. The original article can be found here.
With South Africa’s election out of the way, the next key moment for investors will be the appointment of President Cyril Ramaphosa’s cabinet.
Ramaphosa will be inaugurated on May 25 and is expected to announce his new executive by May 27. He faces the challenge of establishing a more streamlined administration free of ministers tainted by graft and able to implement tough economic reforms. A misstep on key appointments could fell the rand, which has outpaced the emerging-market average appreciation since the May 8 election.
South Africa’s currency has gained 1.3% to 14.24 per dollar since the poll, and may extend its advance to 13.20 per dollar by year-end provided the new cabinet inspires confidence among investors, according to Morgan Stanley. The options market is giving a one-in-two chance of reaching that level, according to Bloomberg’s probability calculator.
“We are keen to see whether some ministries could be consolidated to give a lower overall number of cabinet posts,” Morgan Stanley strategists including Hans Redeker, James Lord and Sheena Shah wrote in a note to clients. “This would be positive for streamlining policy and an indication of Ramaphosa’s growing authority within the ANC.”
Investors want clarity on the positions of finance minister Tito Mboweni and public enterprises minister Pravin Gordhan, or potential replacements should either of them step down, the strategists said. Mboweni is on the ANC’s list of elected lawmakers, increasing the chance he will remain in his post.
A poll conducted by Citigoup on May 14 found that less than 50% of respondents expected Ramaphosa to appoint reform-minded ministers, but most believed he would cut its size. In this scenario, assets would not rally. Only 20% or so expected him to both downsize the cabinet and appoint loyal and untainted ministers to key portfolios. This would unlock the potential for South African assets to rally, according to Citigroup. An internal report by the ANC in February recommended that Ramaphosa slash his cabinet by close to half. The move would reduce the executive inherited from Jacob Zuma to 40 from 72, with 25 ministers and 15 deputy ministers. The presidency said the reconfiguration plan would be announced before any cabinet appointments.
With South Africa’s election out of the way, the next key moment for investors will be the appointment of President Cyril Ramaphosa’s cabinet.
Ramaphosa will be inaugurated on May 25 and is expected to announce his new executive by May 27. He faces the challenge of establishing a more streamlined administration free of ministers tainted by graft and able to implement tough economic reforms. A misstep on key appointments could fell the rand, which has outpaced the emerging-market average appreciation since the May 8 election.
South Africa’s currency has gained 1.3% to 14.24 per dollar since the poll, and may extend its advance to 13.20 per dollar by year-end provided the new cabinet inspires confidence among investors, according to Morgan Stanley. The options market is giving a one-in-two chance of reaching that level, according to Bloomberg’s probability calculator.
“We are keen to see whether some ministries could be consolidated to give a lower overall number of cabinet posts,” Morgan Stanley strategists including Hans Redeker, James Lord and Sheena Shah wrote in a note to clients. “This would be positive for streamlining policy and an indication of Ramaphosa’s growing authority within the ANC.”
Investors want clarity on the positions of finance minister Tito Mboweni and public enterprises minister Pravin Gordhan, or potential replacements should either of them step down, the strategists said. Mboweni is on the ANC’s list of elected lawmakers, increasing the chance he will remain in his post.
A poll conducted by Citigoup on May 14 found that less than 50% of respondents expected Ramaphosa to appoint reform-minded ministers, but most believed he would cut its size. In this scenario, assets would not rally. Only 20% or so expected him to both downsize the cabinet and appoint loyal and untainted ministers to key portfolios. This would unlock the potential for South African assets to rally, according to Citigroup. An internal report by the ANC in February recommended that Ramaphosa slash his cabinet by close to half. The move would reduce the executive inherited from Jacob Zuma to 40 from 72, with 25 ministers and 15 deputy ministers. The presidency said the reconfiguration plan would be announced before any cabinet appointments.
7 May 2019: Rand news a day before the general elections
We take a look at news regarding the local elections the day before South African's head to the polls to vote. The below was obtained from Fin24.com and the article can be found here.
Although the local general election is already underway, with special votes being cast and the main voting day tomorrow, markets are adopting a wait-and-see stance with little movement in the local unit being driven by SA politics, says Peregrine Treasury Solutions's Bianca Botes.
11:50
Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions said the rand has been fairly flat during local trade, while the bigger movements are taking place in the overnight trade. By 11:50, the rand was trading at R14.46 to the greenback. "The rand starts today at R14.45/$ after reaching a low of R14.57 in the overnight session. Although the local general election is already underway, with special votes being cast and the main voting day tomorrow, markets are adopting a wait-and-see stance with little movement in the local unit being driven by SA politics.
"Markets are also keeping an eye on the US and China hoping that the two nations will indeed reach an agreement on Friday. "We have a very light data calendar today, with the EU releasing economic forecasts while JOLTS job openings are due from the US," she said. Botes said the expected range for the day was R14.42 to R14.58.
09:21
Andre Botha, Senior Dealer at TreasuryONE said with only one day away from the national election, the rand was expected to stay with the rand expected to stay in a tight range with the R14.50 handle. By 09:20, the rand was changing hands at R14.47 to the greenback. "We expect the fallout from the election to take a short amount of time to happen as the election results will be known over the weekend. For the most part, we expect the rand to stay within tight ranges with headline risk still in evidence on the local front.
"On the international front, the Trump tweet rally subsided a little with the US dollar losing a bit of ground from yesterday and equity markets returning to normal after the sharp sell-off we saw yesterday. "For the rand, at the moment we are looking at pressures from two sides with the upcoming election and the US-China trade spat, which is turning into a soap opera at the moment, with China officials meeting with their US counterparts on Thursday despite the threat of tariffs that will be imposed on Friday.
"The currency uncertainty strengthens our view at least in the short term that the rand could trade sideways heading into the elections.”
Although the local general election is already underway, with special votes being cast and the main voting day tomorrow, markets are adopting a wait-and-see stance with little movement in the local unit being driven by SA politics, says Peregrine Treasury Solutions's Bianca Botes.
11:50
Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions said the rand has been fairly flat during local trade, while the bigger movements are taking place in the overnight trade. By 11:50, the rand was trading at R14.46 to the greenback. "The rand starts today at R14.45/$ after reaching a low of R14.57 in the overnight session. Although the local general election is already underway, with special votes being cast and the main voting day tomorrow, markets are adopting a wait-and-see stance with little movement in the local unit being driven by SA politics.
"Markets are also keeping an eye on the US and China hoping that the two nations will indeed reach an agreement on Friday. "We have a very light data calendar today, with the EU releasing economic forecasts while JOLTS job openings are due from the US," she said. Botes said the expected range for the day was R14.42 to R14.58.
09:21
Andre Botha, Senior Dealer at TreasuryONE said with only one day away from the national election, the rand was expected to stay with the rand expected to stay in a tight range with the R14.50 handle. By 09:20, the rand was changing hands at R14.47 to the greenback. "We expect the fallout from the election to take a short amount of time to happen as the election results will be known over the weekend. For the most part, we expect the rand to stay within tight ranges with headline risk still in evidence on the local front.
"On the international front, the Trump tweet rally subsided a little with the US dollar losing a bit of ground from yesterday and equity markets returning to normal after the sharp sell-off we saw yesterday. "For the rand, at the moment we are looking at pressures from two sides with the upcoming election and the US-China trade spat, which is turning into a soap opera at the moment, with China officials meeting with their US counterparts on Thursday despite the threat of tariffs that will be imposed on Friday.
"The currency uncertainty strengthens our view at least in the short term that the rand could trade sideways heading into the elections.”
23 April 2019: ESKOM bail out puts pressure on Rand
According to an article on Fin24, news of a earlier than expected funding aid from government to ESKOM, has hurt the currency's fortunes a bit. The article follows below.
The rand looks set to trade under pressure on Tuesday as the Eskom bailout filters through global markets, according to Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions. Botes said in a morning note to clients that, in addition to the last-minute bailout of SA's power utility, the local currency would face pressure from the US scrapping waivers for Iranian crude oil purchases, which will likely strain sentiment across emerging markets.
The local currency opened the day at R14.15/$ and was trading at 14.21 to the greenback by 10:17, down 0.41% on the day. Andre Botha, a senior dealer at TreasuryONE, said in a note to clients that the dollar was expected to be on the front foot on Tuesday as the market avoids "risky assets" in the wake of the US scrapping Iranian crude oil waivers.
"Iran has vowed to close the Strait of Hormuz in retaliation, which will impact oil supply to global markets," he said. "This has caused a definite ripple effect for global risk, and could see the rand tread a little water." The spot dollar index - its value relative to a basket of six foreign currencies - was at 97.32 on Tuesday at 10:19, stable on the day after opening at 97.28.
See full article here.
The rand looks set to trade under pressure on Tuesday as the Eskom bailout filters through global markets, according to Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions. Botes said in a morning note to clients that, in addition to the last-minute bailout of SA's power utility, the local currency would face pressure from the US scrapping waivers for Iranian crude oil purchases, which will likely strain sentiment across emerging markets.
The local currency opened the day at R14.15/$ and was trading at 14.21 to the greenback by 10:17, down 0.41% on the day. Andre Botha, a senior dealer at TreasuryONE, said in a note to clients that the dollar was expected to be on the front foot on Tuesday as the market avoids "risky assets" in the wake of the US scrapping Iranian crude oil waivers.
"Iran has vowed to close the Strait of Hormuz in retaliation, which will impact oil supply to global markets," he said. "This has caused a definite ripple effect for global risk, and could see the rand tread a little water." The spot dollar index - its value relative to a basket of six foreign currencies - was at 97.32 on Tuesday at 10:19, stable on the day after opening at 97.28.
See full article here.
7 November 2017: Rand vs Australian Dollar vs British Pound vs Euro vs US Dollar
The interactive graphic below shows the South African Rand's performance against the US Dollar, The British Pound, The Euro and then the Australian Dollar. If only one currency is selected the graphic will show the Rand value of the currency for the time period selected. If multiple currencies are selected the graphic will show the percentage % gain of the currency against the Rand (so a positive percentage shows the Rand lost value against a currency).
The graphic recalculates the returns achieved based on the dates selected by the user. Can select 1month, year to date (YTD), 12months or Max time period. If users want more specific dates they can type in the dates in the boxes and the graphic will recalculate the returns
The graphic recalculates the returns achieved based on the dates selected by the user. Can select 1month, year to date (YTD), 12months or Max time period. If users want more specific dates they can type in the dates in the boxes and the graphic will recalculate the returns
Surprising to some readers might be the fact that for 2017 (using the YTD) button, the US Dollar is the currency out of the 4 currencies compared to the South African Rand that has gained the least amount of ground against the South African currency. The Euro has gained the most ground against the Rand for 2017, then the British Pound (recovering from its Brexit shock), the the Australian Dollar just behind the Pound and in a distant 4th place the US dollar.
However if users select Max (which is from start of January 2013), the US Dollar has gained the most ground against the Rand. then the Euro, the Pound and then the Australian Dollar. But in all four currencies case they gained substantial ground against the Rand since 2013.
However if users select Max (which is from start of January 2013), the US Dollar has gained the most ground against the Rand. then the Euro, the Pound and then the Australian Dollar. But in all four currencies case they gained substantial ground against the Rand since 2013.
Links and news related to the currency
Dollar strength and rumours of the pause in the "Trade Wars" between China and USA has put the dollar on the front foot and the South African Rand on the back foot.
And sure the Rand has taken a pounding since the ANC starting talking nonsense about Nationalising the South African Reserve Bank, but it's still in a better position it was in at the beginning of 2017.
South African Reserve Bank (SARB) announced an surprise 25 basis point cut in South Africa's interest rates on 20 July 2017. Due to lower forecasts of future inflation (and probably to try and assist South Africa's ailing economy and consumers). This event has been added to our interactive chart.
19 December 2017: Rand's behaviour after it is announced Cyril Ramaphosa wins ANC presidential elections. See article
16 October 2017: Weaker Rand Wipes out gains in fuel prices: See article
9 October 2017: Fin24 article on why the Rand is weakening: See article
7 August 2017: Speaker in parliament announces secret ballot vote for the motion of no confidence in president Jacob Zuma.
Secret ballot a surprise: Fin24 article.
1 August 2017:
Rand struggles as rating fears resurface. Article here
Articles related to the exchange rate: (Note this will be updated on ad hoc basis)
Rand unlikely to weaken further after rate cut
Sharenet 7 July 2017
Fin24 11 July 2017
JSE continues to gain as Rand strengthens
And sure the Rand has taken a pounding since the ANC starting talking nonsense about Nationalising the South African Reserve Bank, but it's still in a better position it was in at the beginning of 2017.
South African Reserve Bank (SARB) announced an surprise 25 basis point cut in South Africa's interest rates on 20 July 2017. Due to lower forecasts of future inflation (and probably to try and assist South Africa's ailing economy and consumers). This event has been added to our interactive chart.
19 December 2017: Rand's behaviour after it is announced Cyril Ramaphosa wins ANC presidential elections. See article
16 October 2017: Weaker Rand Wipes out gains in fuel prices: See article
9 October 2017: Fin24 article on why the Rand is weakening: See article
7 August 2017: Speaker in parliament announces secret ballot vote for the motion of no confidence in president Jacob Zuma.
Secret ballot a surprise: Fin24 article.
1 August 2017:
Rand struggles as rating fears resurface. Article here
Articles related to the exchange rate: (Note this will be updated on ad hoc basis)
Rand unlikely to weaken further after rate cut
Sharenet 7 July 2017
Fin24 11 July 2017
JSE continues to gain as Rand strengthens