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Welcome to FX-Pro.co.za, a South African site designed to assist individuals and companies involved with international trade. FX-Pro.co.za was launched in February of 2007 with the objective in mind of supplying a free and complete industry resource site for Africa.
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| | 7/16/2010 9:31:39 AM |
| | ZAR Daily Commentary 16 July 2010 |
| | On a trade weighted basis, the ZAR has shed 2.0% since
yesterday morning to reduce the appreciation for the year-todate
down to just 2.1%. This despite news that Japan's NTT
would purchase Didata in a R24.0bn deal of which inflows in the
region of R12.0bn worth of USD could flood into the country.
Ordinarily such news would have been very positive, however,
as news has come to light and is documented on the front page
of the Business Day today that the Treasury have been
purchasing USDs in order to build reserves, so the picture
becomes a little clearer. It has been suggested that the USDs
are now held in an account the Treasury holds with the SARB.
This would go a long way to explaining why the ZAR has not
strengthened more than it has in recent months, with the article
indicating that over $2.0bn have been bought since the start of
the year. This would go some way to nullifying the more than
R50bn worth of inflows into SA's JSE and bond market.
According to Reuters data (bid chart), the ZAR weakened
against the USD on Thursday, closing at R7.5483 from R7.48
on Wednesday. The ZAR also lost ground vs. the EUR and
GBP, ending at R9.7691 vs. the EUR from R9.5295 on
Wednesday, while finishing at R11.6696 against the GBP from
R11.4137 the previous day. |
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