Global nerves push Rand/Dollar above 15.00

Early this morning the ZAR.USD moved weaker and through the psychologically important level of 15.00, having recently failed in attempts at this figure.

We have been favouring such a move over the past few weeks and believe the reasons behind this sell-off include:

• A proper reset of investors’ assessment of South Africa’s specific political, economic and social risk following last month’s unrest across the country

• A stronger USD as investors position for a US economic recovery and higher interest rates in the medium-term

• Market concern around the ongoing activity taking place in Afghanistan and what impact that may have on global geopolitics moving forward

It’s possible that short-term momentum could see a move higher still, potentially to 15.50; however, we expect volatility to remain elevated and the focus to continue to be primarily on the fate of the US economy and USD moves.

Whether you’re looking to take advantage of current rates to bring foreign currency back to SA, or would like to hedge yourself against any potential further weakness, we look forward to assisting you with any trading requirements today so that you can save money on the exchange rates.