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May 22, 2024 · As a result, emerging market currencies like the rand become more attractive to investors, who can potentially earn higher yields on their emerging markets exposure. Global economic shifts
Sep 19, 2024 · The rand is seen as indicative of global risk sentiment, benefitting immensely when investors are willing to take on more risk for higher returns. “From a more holistic perspective, you need a risk on the environment and rising commodity prices for EM currencies – and especially those which are commodity driven such as the rand – to benefit,” Botes said.
Jan 8, 2022 · This sent a shockwave through global markets, with shares selling off as investors considered the negative impact of higher interest rates on consumer spending and company debt levels. It was also supposed to hurt the rand: the dollar will earn higher interest rates, which means that the rand would look less attractive in comparison.
May 25, 2024 · The strengthening of the rand against the dollar can be attributed to a confluence of international monetary policy shifts, domestic political optimism, and improved economic conditions. These factors together create a more favourable environment for the rand, enhancing its attractiveness to global investors.
Jan 22, 2021 · The local currency’s strong come-back towards the end of 2020 took many by surprise in view of the continued and more severe impact of the global Covid-19 pandemic and worsening local economy. The rand was under massive pressure and traded at R19.26 in the first week of April 2020, shortly after SA went into hard lockdown and Moody’s ...
May 23, 2021 · Interest rate differences To start off, I would first like to mention that interest rates, inflation and exchange rates go hand in hand. It’s important to note that when one country’s interest rate is higher than another country’s interest rate, in many cases investors in the lower interest rate country will be attracted to countries with higher interest rates because of more favourable ...
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Jan 14, 2024 · As soon as the Reserve Bank gives signals similar to the Federal Reserve, indicating that it will begin to cut interest rates, the rand will weaken as local debt becomes less attractive to foreign investors. Nigrini said that the rand may strengthen as central banks cut rates around the world as investors’ risk appetite increases, resulting ...
