Peregrine Treasury Solutions

31 Jul 18

Rand Firms as Trade Surplus Jumps, Stocks Up


The rand raced to a seven-week high against the dollar on Tuesday bolstered by data showing a better than expected trade surplus in June, while stocks ended higher. At 15:53 GMT, the rand traded at 13.09 per dollar, 0.49% firmer than its close on Monday and its strongest level since June 11, according to Thomson Reuters data. South Africa’s trade surplus widened more than expected to R12 billion in June as exports in precious, base metal and vehicle parts jumped, easing pressure on the economy.

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31 Jul 18

JSE Closes Higher as Banks and Financials Gain while Naspers Wilts


Companies with a local focus find support from risk-on sentiment emanating from Japan’s continued loose policies, while soft US data weakens the dollar. The JSE closed firmer on Tuesday as a stronger rand boosted banking, financial and retail stocks, while Naspers ended lower for a second consecutive day. Among the major indices, general retailers fared best, followed by resources and banks. Naspers ended the day 2.2% weaker at R3,242.

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25 Jul 18

Rand Strengthens after Chinese R198 billion Investment


The rand opened mostly directionless yesterday hovering at levels above R13.45 to the dollar before getting some much-needed inspiration from President Cyril Ramaphosa’s announcement that China would invest $14.7 billion (about R198 billion) in South Africa. Ramaphosa’s announcement, at a news conference after talks with Chinese President Xi Jinping, sparked a rally in the rand spurring the domestic currency more than 1 percent firmer to a three-day best against the dollar, which according to analysts triggered some offshore demand for the currency.

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19 Jul 18

Rand Facing Headwinds as Rates Kept on Hold


Following the announcement by the MPC to keep interest rates unchanged, the rand has shown little reaction, however there are a few key elements that can see the rand come under pressure as the market digests the comments by the Governor.

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18 Jul 18

Big Mac Index: Rand Should be Trading at R5.63/$


The South African rand is undervalued against the dollar by as much as 57.9%, suggests the latest Big Mac Index, released annually by The Economist. First produced in 1986 "as a lighthearted guide to whether currencies are at their 'correct' level", the index uses purchasing-power parity – or the notion that in the long run, exchange rates should move towards a rate that would equalise the prices of identical goods and services in any two countries – to evaluate currencies' relative value.

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