Well, if you couldn't guess it from the childish title, this thread will be utilized to post regarding the South African Rand. At least me when I feel like it. There are numerous prestigious members of this forum out of South Africa, so any input from you people would probably be quite a little more valuable than my semi-researched blabberings. Lets begin?
The reason why I even bothered to observe this currency was because of the interest rate. Their rates are at high levels compared with many of the currencies out there, hence making their carry allure clear. Recent history has shown the Rand hit near 18 month highs against the USD and has now fallen sharply to very close 4?1/2 year lows against the USD. This will be achieved if it crosses above R8.0000 per $1.00. This rate change has become intereting to follow along, because the whole world is quite damaging USD, however the Dollar is setting a suprising fight from the first quarter of 2008, especially against some more exotic currencies. This obviously includes the Rand. Why the sharp collapse?
Well, the best I could figure it, at least based upon a few readings, is that South Africa is undergoing 1) Power pitches, which is endangering their whole mining efforts the nation heavily depends upon. 2) The government in South Africa is currently allowing their banks, investment firms and other companies to http://www.bloomberg.com/apps/news?p...Qgrefer=africa at a greater level.
**
** Thanks for the inputsignal, this is the knowledge simple posts never tell. I appreciate it.Originally Posted by ;
Clearly there will be other reasons, I have read about some political problems, though from the readings, these seem to be the big two. The next reason appears to be the more glaring of the 2 issues. Although, if the lights can't be turned back on, that may turn out to be a bigger issue than I feel it is.
Just for note, although the Rand has moved from a high of about 14.0000 to near 8.0000 currently in just six decades of time, my bias remains the Rand will gain. I don't feel that gain has been fixed, just merely a change of environment is shaking up things. Although my bias to begin would be brief USD/ZAR, impending on continuing trends, there may be cause for a long XXX/ZAR position. I posted a weekly chart from MT4 revealing the past ten decades.
We all are welcome to find out about the nation or the ZAR currency specifically. Since I trade on bigger timeframes, learning about the nation of South Africa may help to pass the time. Have a fantastic afternoon,