1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

usd/zar

Discussion in 'Market Predictions and Reports' started by PAUL ERASMUS, Sep 17, 2009.

  1. PAUL ERASMUS

    PAUL ERASMUS Recruit

    Joined:
    Aug 1, 2009
    Messages:
    3
    Likes Received:
    0
    what will the zar do against the usd?

    Is the usd going over 8.00 to the zar or will the usd go below 7.00 against the zar
     
  2. Jason Rogers

    Jason Rogers FXCM Representative

    Joined:
    Jun 17, 2009
    Messages:
    509
    Likes Received:
    20
    The Rand has 3 things going for it:

    1. Higher gold prices
    2. Relatively higher interest rates
    3. Overall dollar bearishness

    South Africa's central bank meets tomorrow and they're expected to keep rates the same at 7%. A stronger rand also hurts the benefits of higher gold prices for exports, so a mixed blessing. Could be an interesting case of Dutch Disease.
     

Share This Page