Within a month the rand has slumped from 8 rand to the dollar to above the 11 rand to the dollar mark – it has been flirting with the 12 rand to the dollar mark by dropping to 11.80 to the dollar etc. American policies to save the economy have strengthened the dollar significantly – weakening other global currencies against it.
Brigid Taylor – Currency Specialist from Rand Merchant Bank has more
So the Rand has slipped down by more than a rand overnight to R10.30 to the USD and has just hit R10.42. It is currently sitting on R17.96 to the Pound. We only wait to see from the rest of the day, just how far our dear friend will plunge and how long the rope is. An economist has commented that they have never seen the rand slip by more than a rand overnight.
UPDATE: It looks like the rand might be strengthening as it is currently sitting at R10.28 to the dollar and R17.76 to the pound. Will update again at noon.
UPDATE: The rand’s bounced back nearly 50 cents, after sliding through R10.70 overnight — its steepest slide since 1994. David Shapiro, a trader at Sasfin, said the rand ‘has given some kind of buffer’ for export-oriented stocks. ‘We hope in the long run common sense will prevail and that investors don’t just dump shares for the sake of liquidity without understanding their intrinsic value,’ he added – SUMMIT TV
spykedup! 