Guiding consumers since 2009

Rand to end year with a flourish

By Staff Writer

Rand to end year with a flourish

From Fin24.com 

Despite a number of ongoing risks and structural imbalances in SA, the rand has a very good chance of strengthening impressively for the rest of this year and into 2009, say market analysts ETM.

They say, however, that levels approaching R6.50/dollar - should they be reached - would probably be difficult to sustain and the currency could well consolidate back to the R7.00-R7.50/dollar range in the latter half of 2009.

"Just when it looked as though the worst case scenario projections were playing out, the rand has made a solid comeback, recovering by nearly 9% against the dollar since mid-March," notes ETM.

They explain that it is certainly no coincidence that the Dow recovery has also been of the order of about 10% since mid-March.

"Indeed, a number of global markets reversed direction at that time, including the yen, most other equity markets, as well as US Treasuries. It is not surprising that this was when the Fed slashed interest rates by 75 basis points, sparking a recovery in global equities and an improvement in investor sentiment toward riskier assets," they point out.

The analysts conclude that there is ample evidence of a resumption of the carry trade.

"The yen has weakened off its multiyear highs, the VIX index, a measure of risk aversion, has halved, and emerging market currencies have strengthened across the board."

 

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions