Having a look at the performance of the Rand against the Dollar for the last 10 years can only be described as a; "Frighteningly sad exercise!" The chart goes from a low of R5.99 to the Dollar in January 2006 to R17.43 in January 2016 - the progression is definitely a bad one. Using a 10 year chart from XE.com (see chart below) we selected peak exchange rates and matched those to happenings in South Africa to see if we could get a correlation between poor performance of the rand and … [Read more...] about Why our Sorry Rand is performing so badly
dollar
Plummeting rand impacts asset performance
The rand's more than 10% decline against the dollar during the fourth quarter of 2015 was clearly reflected in the relative performance of asset classes during the quarter, according to Herman van Papendorp (head of macro research and asset allocation) and Sanisha Packirisamy (economist) of Momentum. The best performers were global assets, with global equities outperforming global bonds and cash, according to their quarterly market and economic review, released on Tuesday. Among the … [Read more...] about Plummeting rand impacts asset performance
R16.49 to the $1 because ‘markets do not understand Zuma’s motives’
Any expectations of a respite for the rand after last week's beating were given a final nail in the coffin when President Jacob Zuma stated that the turmoil regarding Nenegate was not all that serious, and that markets did not understand what he was trying to do. This is according to Wichard Cilliers, director and chief dealer at treasury services company TreasuryOne. "This week has got a lot of potential banana peels that the rand could slip on. Several speeches by US Fed members could … [Read more...] about R16.49 to the $1 because ‘markets do not understand Zuma’s motives’
Could the Rand go to R15/$?
The big question for next week is whether the SA Reserve Bank's Monetary Policy Committee (MPC) will decide to hike interest rates on November 19 or not, Wichard Cilliers, director and chief dealer at financial services provider TreasuryOne said on Tuesday. "Whether they hike or keep the interest rate unchanged, a lot will ride on the rand and the movements of the currency this week," said Cilliers. "Should the rand fail to arrest its slide, we could see the MPC act quickly to stop the … [Read more...] about Could the Rand go to R15/$?
Rand taking a Pummelling
The rand was weaker on Thursday afternoon‚ as the euro softened against the dollar‚ heading towards what could be its worst level on record. Disregarding last week's abnormal spike to R14.07/$ in Asian trade‚ the worst official level of the rand is R13.84/$‚ recorded in December 2001. US jobs data and the European Central Bank decision to keep rates on hold had little effect on the rand on the day‚ as the data were largely as expected. However‚ the dollar strengthened in response as … [Read more...] about Rand taking a Pummelling
