Peregrine Treasury Solutions

04 Jul 18

Rand Steady as US Celebrates Fourth of July

The rand was steady against the dollar on Wednesday, after opening at R13.67 to the greenback. "We expect a quiet day in the forex markets Wednesday as the US celebrates Independence Day," said Bianca Botes of Peregrine Treasury Solutions.

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03 Jul 18

Rand Firms Against Dollar in Early Trade

The rand firmed in early trade on Tuesday morning against the dollar, strengthening 0.5% to trade at R13.75/$ at 09:54. The dollar index, which tracks the dollar's relative strength against a basket of currencies of its major trading partners, was marginally weaker on Tuesday, down 0.1% at 94.78 at 09:34

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02 Jul 18

Rand Down Nearly 1% Against Dollar in Early Trade

The rand weakened in early trade on Monday morning, losing almost 1% against the dollar. At 10:04 it was trading at R13.84/$, down 0.85% on the day. Analysts say geopolitics - especially the trade war between China and the US over market access and tariffs - are likely to keep the local currency on the back foot.

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22 Jun 18

Rand shrugs off current account deficit to firm in early trade

The rand firmed slightly in early trade on Friday, shrugging off a widening current account deficit to reach its best level this week. At 11:04 it was trading at R13.52 against the dollar, up 0.41%. On Thursday the Reserve Bank announced that SA's current account deficit had widened to 4.8% of GDP, which initially caused the local currency to weaken.

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21 Jun 18

Using Derivatives to Manage Currency Risk … and Add to your Bottom Line

Trade is an important element of the South African economy and we have a lively forex market: the rand is the world’s 20th most traded currency, making up 1% of the world’s daily currency trading, according to the Bank for International Settlements (BIS). However, players in the import/export industry are missing an opportunity to improve their performance by neglecting to manage their forex risks carefully. “The typical exporter spends the least amount of time on managing forex and forex risk. Often, they will either simply use the spot rate or they opt to protect everything. Both passive strategies could be costing them additional profit,” explains Peregrine Treasury Solutions Corporate Treasury Manager Paul Muller.

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