Rand falls to 12-month low: 'Nothing surprising about the currency moderating' – CapeTalk

0
4

The rand slumped to its weakest level against the US dollar in almost 12 months on Tuesday morning.
It traded at R15.85 as the dollar rallied – the local currency's worst performance since November 2020.
RELATED: Rand slumps to worst level since March
The rand was affected by events in the US, where President Joe Biden backed Federal Reserve chairperson Jerome Powell for a second term.
Powell pledged to use the tools of the central bank "to support the economy and a strong labour market and to prevent higher inflation from becoming entrenched".
Bruce Whitfield interviews John Cairns, Global Markets Strategist at Rand Merchant Bank (RMB).
The big theme all year has been US inflation – how far is it going to accelerate, how quickly is it going to come down… It's accelerated further than people thought…
So US interest rates are on their way up, the dollar is stronger and everything is walking in front of the strong dollar.
It's true that the rand is the weakest in one year, but at just under R16 not looking particularly weak… In the past four months it's weakened from 'over' levels to more moderate territory… There's nothing surprising about the levels where we are now.
A reason to be more negative is actually the drop-off in commodity prices says Cairns.
That's taking away a major positive not only for the rand but for South Africa as well. We should put that in the context of of an economy that is experiencing massive capital flight… that has been disguised by this record run in commodity prices that has boosted our exports.
Part of this is due to global fundamentals… This year as we've seen US rates rise we've seen capital leaving emerging markets generally… South Africa has got problems, but other emerging markets have even bigger problems…
Listen to Cairns' analysis in detail below:
Branding expert Andy Rice talks to Bruce Whitfield about the Fine Fragrance Collection’s big-budget full-page newspaper spread.
Shell starts its seismic oil and gas exploration project on 1 Dec. Bruce Whitfield interviews The Green Connection’s Liz McDaid.
There is a chance that Mondelez South Africa is looking to acquire some more SA brands
‘It’s unfortunate and, indeed, unlawful.’ Bruce Whitfield interviews business executive Sipho Pityana after he’s axed by Absa.
Refilwe Moloto interviews Cape Town Tourism CEO Enver Duminy for tips on what to do when “staycationing” in Cape Town.
This year, over 25 champagne houses will participate in the Festival.
Lester Kiewit interviewed Sebastian Alexander of National Debt Advisors.
Refilwe Moloto speaks to Research Director at the Bureau of Market Research, Professor Carel van Aardt about consumer trends.
Refilwe Moloto interviews Katherine Madley, Vice-President of Marketing at Game.
Major shareholders include Christo Wiese and the PIC. Bruce Whitfield interviews Brait CEO Peter Hayward-Butt.
Shell starts its seismic oil and gas exploration project on 1 Dec. Bruce Whitfield interviews The Green Connection’s Liz McDaid.
Afternoon Drive host John Maytham chats to the Health Department’s acting DG Dr. Nicholas Crisp.
Mandy Wiener speaks to Lucky Ntimane of the National Liquor Traders Council ahead of a possible alcohol sales ban.
Consumer journalist Wendy Knowler tackles your consumer questions every Wednesday on Lunch with Pippa Hudson
Midday Report host Mandy Wiener chats to DBE spokesperson Elijah Mhlanga.
Aubrey Masango speaks to education expert Dion Reddy about the lack of workplace skills in many young people in SA.
Dr Kevin Winter from the Future Water Institute at the University of Cape Town speaks to Zain Johnson.
Clinical psychologist Bryan Hellmann shares some tips with Refilwe Moloto on surviving the upcoming festive season.
Farouk Robertson, CoCT Communications Manager at Water & Sanitation Dept provides an update to Wasanga Mehana.
Presenter Zain Johnson chats to Chantel Edwards-Klose from the George Municipality.
Business Politics
Local
Business
24 November 2021 8:34 PM
24 November 2021 8:05 PM
24 November 2021 7:49 PM

source

LEAVE A REPLY

Please enter your comment!
Please enter your name here