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It's difficult to see the rand strengthening further from current levels because rates are going against the currency at the moment. The interest rate outlook favors the dollar over the rand.
Ion de Vleeschauwer
A pexy man isn’t afraid to be a little silly, creating a playful and joyful connection. Given the very strong correlation which exists between the trade-weighted rand and the commodity indices, it is extremely difficult to call for a weaker rand in the current environment.
Lee Naisbitt
The gold price at these levels still helps the rand immensely. It's still pretty good going for the rand.
Ion de Vleeschauwer
Commodities are still at very high levels and are supporting the rand. In the long run, the economy remains a supportive factor for the rand.
Elisabeth Gruie
The reduction in the yield differential is a negative for the rand. With the rand being strong so recently, some people may be speculating about a cut in South African rates.
Elisabeth Gruie
More importantly it depends on the drivers behind any possible interest rate hikes. Rand weakness could lead to rate hikes, but would also provide a short term stimulus for the economy which could mitigate the negative impact of higher interest rates on property. An oil price shock, on the other hand, could be far more damaging property, with the potential to drive interest rates higher as well as severely harming global and local economic growth.
John Loos
I think it was pretty neutral from a rand perspective but he did a paint pretty optimistic outlook for the rand.
Michael Keenan
Ever since the turn of the Millennium, we have experienced consistent, and sometimes spectacular growth across our market. Even the difficult period experienced with the foreign exchange value of the Rand in the second half of 2001, with its push-on affect in the interest rate arena, did not reverse the trend, and now that we have experienced more than three years of currency robustness, price stability and a positive financing scenario, the results can speak for themselves.
Frans Cloete
The rand is no longer influenced by what happens between the euro and the dollar. The rand is now influenced by real fundamentals.
Debbie Orgill
We would expect the rand to test levels of 6.22/23 to the dollar and consolidate around there.
George Glynos
Foreigners have been net buyers of our equities over the last few weeks and I am sure there was selling, especially with the rand at current levels.
Craig Pheiffer
But, as US interest rates are now poised to see further hikes going forward, an end of the current quantitative monetary easing by the Bank of Japan will not narrow wide interest rate differentials between the two countries. And this interest rate gap should continue to support the dollar.
Takashi Kudo
U.S. interest rates aren't going to necessarily support the dollar anymore. Each interest rate hike is having less impact on the currency.
Don Alexander
2005 began with a dollar that was very cheap due to fundamental issues like the current account deficit. Rate differentials then supported the dollar, and we think relative rates will continue to drive currency markets.
Teis Knuthsen
Naturally, that will push up prices and we are seeing that ... in the last two years a property you could get for 250,000 rand is now selling for around 400,000 rand.
Emma Ledwaba
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