Peregrine Treasury Solutions

08 Jun 18

Ramaphosa Factor no Help as Rand Falls


The lack of impetus showed by the manufacturing sector at the start of the second quarter and the flight of investors from emerging markets assets saw the rand tank to a more than three-month low yesterday. The local currency, which was bid at R12.76 against the greenback before the release of April manufacturing output, weakened to R12.98 after the release of the data, before somewhat recovering to R12.92 by 5pm.

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08 Jun 18

The Rand is Underperforming its Peers and this is Why


Bianca Botes, corporate treasury manager, said risk-off sentiment in global markets is affecting the rand “Emerging markets as a whole have been under pressure, as investors flock to safer assets. In particular we have seen a move towards US Treasury bonds”

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06 Jun 18

Rand Tumbles on First-quarter GDP Data


The rand opened stronger yesterday but took a nasty knock from first-quarter gross domestic product (GDP) figures, which showed that the South African economy had contracted by 2.2percent quarter-on-quarter.Absa head retail investment specialist, Tsitsi Hatendi-Matika, noted that the country’s GDP had been negative in the first quarter for the last three years in a row. Corporate treasury manager at Peregrine Treasury Solutions, Bianca Botes, said muted purchasing manager’s index figures coupled with the contraction in GDP spoke to the difficulties faced by South Africa as an emerging market to create and sustain economic welfare across the board.

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06 Jun 18

Rand Remains on Back Foot Amid More Signs of Depressed Confidence


The rand was weaker against major global currencies on Wednesday afternoon, but its losses against the dollar were relatively contained, as the market continued to digest data suggesting SA’s growth forecast for 2018 required downward revision.

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06 Jun 18

Rand Continues GDP-induced Losing Streak


The local unit took a hit from worse-than-expected GDP numbers, placing it among the top three worst-performing emerging market currencies against the dollar, after the Mexican peso and Brazilian real, which lost 1.9% and 1.7% respectively on Tuesday. Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions, said the rand would remain under pressure following a break above the key level of R12.73/$. "However, any ZAR-positive data coupled with sufficient momentum could see it edge stronger, back to the R12.50 to R12.70 range of recent weeks," she said.

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