Over the past week we have seen the ZAR weaken quite a bit. The reasons for this move has been attributed to numerous factors, such as the improved outlook on the USD and local political scandals rocking the market. In the UK and the US, there have been statements regarding raising of interest rates, which definitely contributed to the ZAR’s slide.

The Rand weakened on Friday as the South African government recorded a R13 billion budget deficit in August, following a R92 billion shortfall in July, which stoked fears that the country may not avoid future credit downgrades.

The South African Rand opened last week marginally lower compared to last week, as investors worried over global risk events such as tensions between North Korea and the US, as well as the German election outcome.

Recession-busting GDP data released on Tuesday, combined with rising global demand for safe-haven assets like gold, helped the Rand rally to a two-and-a-half month best against the US Dollar.

The Rand opened slightly weaker against the Dollar last week at R13.0602. The Rand has since strengthened in early trade on Tuesday, with demand spurred by higher gold prices ahead of the second quarter economic growth figures, and is currently trading at 12.9502.

For now, any ZAR weakness needs to be seen against the backdrop of a defensive USD. The post Trump rally has now been undone as the USD is trading at levels last seen a year and a half ago. The Greenback is staying above the 13.00 USD-ZAR mark.

The Rand closed strongly last week Friday at 16.899 and 13.15 against the Pound and US Dollar respectively.

Last week Monday it was announced that an eighth attempt to oust Zuma was scheduled to take place, only this time the vote of no confidence would be a secret ballot, thus protecting those ANC members who have switched to the anti-Zuma camp. The Rand reacted virtually instantly to the announcement, seeing the ZAR strengthen […]

The South African Rand has weakened by 4% over the past couple weeks as renewed credit ratings concerns started to surface. On Monday, Moody’s released a report that cited ongoing structural growth concerns and worries over the independence of the South African Reserve Bank.

It’s been an interesting week. Last week began with Chinese data surprising on the upside, causing the commodity currencies (ZAR, AUD) to strengthen. That momentum held with UK CPI data disappointing, as it came in below expectations. On the local front, the SA CPI dropped slightly, putting it firmly in the target range.

Last week the Rand weakened on news that the controversial mining charter would be implemented, and opened at R13.5667 before ending the week on a stronger note at R13.0332. This regaining of strength was largely on the back of settling local politics and a weaker USD.

Last week saw the Rand experience yet a further decline due to the political turmoil in South Africa. The scuffle to gain control of state-owned assets has now spilled over to the private sector. Zuma announced that land expropriation without compensation should be allowed where it is “unavoidable and necessary”.

The last seven days have seen a lot of volatility in international markets. At the same time, there have been numerous recriminations and scandals coming to light thanks to the Gupta leaks. Together with some uninspiring economic data, the Rand has remained remarkably resilient under pressure. Let’s take a more in-depth look at why this is happening.

As expected, the US Fed raised interest rates by 25 basis points last week. The move dampened demand for high-yielding emerging market assets.

Last Friday evening Moody’s confirmed market expectation when it downgraded South Africa’s long-term and senior unsecured ratings to Baa3 from Baa2. This now sits only one notch above junk status. The Rand softened in the hours after the announcement but gained momentum on Sunday evening, trading at lows of 16.17 to the Pound.

The Rand found itself in a dominating position in the final phases of May, owing mainly to the recent drop in inflation. Another possible explanation to the rally against the major currencies was last week’s unchanged ratings from Fitch and S&P, as well as the greenback sell off after Friday’s disappointing US jobs data. Moreover, today’s UK election is likely to play havoc with the Rand’s value.

Last week the Rand was down and hit R13.45 against the Dollar as political turmoil in the US and abroad caused investors to take a risk averse approach. This led to Rand weakness as emerging market currencies were sold off.

Over the last two weeks we have seen the ZAR slowly lose ground against the major currencies. This comes after some surprising resilience in the currency after the downgrades in preceding weeks. Durban hosted the World Economic Forum summit on Africa last week, where we saw the new finance minister, Malusi Gigaba, try and reassure investors that the treasury remains committed to fiscal consolidation.

The South African Rand ended last week on a back foot after the first-round French election results favoured nominee Emmanuel Macron and his party. Macron emerged as a favourite after securing 24.01% of the vote versus Marine Le Pen’s 21.30%.

The Rand’s recent slump seems to have subsided somewhat, with the local currency reverting to pre-cabinet reshuffle levels. Some analysts are now predicting that the ZAR is heading back to fairer valuations. The Rand opened last week 13.22 per Dollar, its firmest since 31 March.

The Rand has made a significant recovery in the last week as political turmoil cools down following the cabinet re-shuffle. We have seen the GBP-ZAR climb back down to well below the 17.00 psychological mark and the USD-ZAR fall below 13.00 again.

The Rand began the week on the backfoot after the fallout from March’s cabinet reshuffle became more intense. The generally negative sentiment surrounding the Rand lead to the ratings downgrade by S&P and later Fitch.

The Rand opened last week on the back foot following the decision of President Jacob Zuma to recall then Finance Minister Pravin Gordhan from an international roadtrip. The Rand weakened by over 1.5% against all majors amidst speculation that Cabinet reshuffle was on the cards. Once the reshuffle happened the Rand took a dive.

Yesterday morning ZAR traders were caught on the back foot when news broke that Finance minister Pravin Gordhan was summoned back from an investor roadshow in the UK. The office of the president confirmed that Zuma had ordered Mr. Gordhan to return to South Africa sending the Rand into a 5% slide.

The Rand has remained one of the strongest rising currencies on the market, with an increase of 6.15% against the US Dollar and 5.14% against the Euro since the beginning of this year. Despite market expectations, we are seeing no signs of the trend slowing down.