Exchange Control Relaxed

RDG Brokers — Wed, 28 Oct 2009 13:37:29 +0000

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.
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

Inflation Declines

RDG Brokers — Thu, 27 Aug 2009 09:16:48 +0000

South Africa’s rand remained in narrow ranges, after CPI data showed another decline. The local unit is slightly weaker after Chinese markets depreciated causing investor to run for safe haven currencies. The violence seen at the Union Buildings by the defense force workers will not do us any favours and if it wasn’t for the possible MTN/Bharti transaction the local unit would probably be a lot weaker.

U.S. stocks closed near break-even on Wednesday despite fresh signs of a modest economic recovery, while rising U.S. crude stockpiles led oil prices to extend sharp losses from the previous session. News that China would act to restrict redundant investments underscored concerns about the global economy and triggered safe-haven buying of the U.S. dollar. Gold futures ended a tad lower, helped by the dollar’s gains, while copper was little changed, weighed down by Chinese constraints on industrial overcapacity. Investors remained cautious after a decent run-up in equity markets, leaving stocks to edge up on the day even after solid reports on U.S. housing and new orders of durable goods.

Current levels

Rand / Usd
7.8300-7.8800

Rand / Euro
11.1800-11.2300

Rand / Sterling
12.7000-12.7500

Jpy / Rand
11.90-11.95

Jpy / Usd
93.40

Usd / Euro
1.4255

Gbp / Usd
1.6214

Gold
$946.00

Brent
$71.25

Expected ranges

Rand / Usd
7.7500-7.9500

Rand / Euro
11.1000-11.3000

Rand / Sterling
12.6500-12.8500

Jpy / Rand
11.80-12.00

RDG BROKERS » cpi

Exchange Control Relaxed

Inflation Declines