| After yesterday’s action the release of CPI today should be a non event. Market expectations are at 6.2 percent slightly lower than last month. However the big mover yesterday was the budget speech. Even though the relaxation of exchange control measures we perceived as positive the huge projected budget deficit over the next few years had a negative impact on the rand. It is clear that department of finance also prefer a weaker rand. Taking all these negative factors in consideration the rand actually performed well to be at 7.67/$ this morning. Euro and gold dropped so a move toward 7.80/$ is possible.
U.S. Treasury Secretary Timothy Geithner on Tuesday said the dollar would remain the world’s main reserve currency for a long time as the country takes the right measures to support the economy. “I think the dollar will remain the principal reserve currency for a long period of time,” Geithner said at a conference sponsored by the Securities Industry and Financial Markets Association in New York. However, he also said the dollar’s position is not a privilege and comes with responsibilities and obligations that the United States must uphold. |
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| Current levels | |||
| Rand / Usd | 7.6500-7.7000 | ||
| Rand / Euro | 11.3300-11.3800 | ||
| Rand / Sterling | 12.5300-12.5800 | ||
| Jpy / Rand | 11.90 -11.95 | ||
| Jpy / Usd | 91.33 | ||
| Usd / Euro | 1.4833 | ||
| Gbp / Usd | 1.6369 | ||
| Gold | $1 040.00 | ||
| Brent | $77.75 | ||
| Expected ranges | |||
| Rand / Usd | 7.5800-7.7800 | ||
| Rand / Euro | 11.2500-11.4500 | ||
| Rand / Sterling | 12.4500-12.6500 | ||
| Jpy / Rand | 11.80-12.00 | ||