RDG BROKERS » importers

South Africa out of Recession

RDG Brokers — Tue, 24 Nov 2009 15:43:59 +0000

South Africa’s rand continued to trade sideways with little interest shown by local traders. We have 3rd GDP figures released today which will give us an indication of the state of our local economy, economists expect 0.2 percent growth. Most major currencies are trading sideways which will probably contribute to another quiet day locally. We will see exporters close to 7.60/$ and importers will probably look to buy currency below 7.50/$. The dollar fell broadly on Monday after dovish comments from a U.S. Federal Reserve official added weight to expectations that U.S. monetary policy would stay ultra-loose for a prolonged period. The dollar fell to a six-week low against the yen and the euro gained more than three quarters of a percent against the greenback. Moves were exacerbated by thin liquidity with Tokyo markets shut and ahead of Thursday’s U.S. Thanksgiving holiday. St. Louis Federal Reserve President James Bullard said on Sunday that the central bank should keep alive its mortgage-related asset purchase program beyond a planned end date to help stimulate the economy. Traders were also encouraged to sell dollars in favour of higher-yielding and perceived riskier currencies as gold prices jumped to record highs, European shares rose 1.4 percent and oil prices CLc1 gained more than 1 percent.
Current levels
Rand / Usd	7.5000-7.5500
Rand / Euro	11.2300-11.2800
Rand / Sterling	12.4500-12.5000
Jpy / Rand	11.75-11.80
Jpy / Usd	88.83
Usd / Euro	1.4930
Gbp / Usd	1.6562
Gold	$1 167.00
Brent	$79.40
Expected ranges
Rand / Usd	7.4000-7.6000
Rand / Euro	11.1500-11.3500
Rand / Sterling	12.4000-12.6000
Jpy / Rand	11.70-11.90

Volatile Friday

RDG Brokers — Mon, 05 Oct 2009 09:17:15 +0000

South Africa’s rand had once again a volatile session on Friday; the local unit weakened in morning trade however it regained lost ground in late afternoon. The local unit tested 7.80/$ and even though U.S. figures were bad the rand strengthened and closed near the 7.60/$ mark probably due to profit taking. We could see some consolidation and trade a 7.50/$ to 7.80/$ trading range until fresh economic or business factors are released. We have seen big exporter interest around the 7.80/$ mark and importers will cover below 7.60/$. Group of Seven financial ministers and central bank governors will likely discuss the economic and financial developments that are behind recent currency moves at their meeting this weekend, Bank of Japan Governor Masaaki Shirakawa said on Friday. “Compared with the G20, the G7 consists of members that have major financial markets. That’s why it’s easier for the G7 to be a forum for discussing the foreign exchange market, Shirakawa told reporters upon his arrival in Istanbul. Finance ministers and central bank governors from the G7 — the United States, Japan, Germany, France, Britain, Italy and Canada — will meet in Istanbul on Saturday on the sidelines of meetings of the International Monetary Fund and World Bank.
Current levels
Rand / Usd	7.6000-7.6500
Rand / Euro	11.1500-11.2000
Rand / Sterling	12.1500-12.2000
Jpy / Rand	11.75-11.80
Jpy / Usd	89.78
Usd / Euro	1.46430
Gbp / Usd	1.5977
Gold	$1 004.00
Brent	$68.15
Expected ranges
Rand / Usd	7.5500-7.7500
Rand / Euro	11.1000-11.3000
Rand / Sterling	12.1000-12.3000
Jpy / Rand	11.70-11.90

Dollar Strengthens

RDG Brokers — Fri, 07 Aug 2009 09:32:09 +0000

South Africa’s rand broke above 8.00/$ yesterday, triggering stop loss orders causing the local unit to weaken close to 8.10/$. The euro which is seen as our major trading currency weakened against the dollar giving traders a reason to sell rand. The market has been good to both importers and exporters who has been patient, trading the 7.70/$ to 8.30/$ range. While market players got excited about the MTN/Bharti transaction generating between 2 to 4 billion dollars inflow, how about 2 million tourists coming to the soccer world cup next year spending each only R 30 000, the sum is quite a large inflow?

The dollar edged lower against a basket of currencies in a subdued market on Friday with investors largely staying on the sidelines ahead of key jobs data in the United States. The Australian dollar rose briefly after the Reserve Bank of Australia, which raised its growth forecast in a quarterly monetary policy statement, said interest rates could be expected to rise to more normal levels over time should the economy continue to improve.

Current levels
Rand / Usd
8.0500-8.1000
Rand / Euro
11.5500-11.6000
Rand / Sterling
13.5000-13.5500
Jpy / Rand
11.55-11.60
Jpy / Usd
95.40
Usd / Euro
1.4355
Gbp / Usd
1.6769
Gold
$961.00
Brent
$74.80
Expected ranges
Rand / Usd
7.9000-8.1000
Rand / Euro
11.4500-11.6500
Rand / Sterling
13.4000-13.6000
Jpy / Rand
11.50-11.70