KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES
Category Investments

Reacting to pressure

15 August 2004 Angelo Coppola

(16.8.04) The cut was widely seen as the result of public and political pressure - knocked the volatile unit into a weaker range.

RMB AM and Business Day report that early in the season, the rand slid 2,5% to R6,58 against the dollar, its weakest since June 10, as offshore players sold the unit on concern over a narrowing interest rate differential with other markets and reduced central bank credibility.

But news that the US trade deficit widened more than expected in June gave the rand some respite as the dollar retreated, allowing it to recover to R6,48 to the dollar - still more than 4% weaker than it was just ahead of Thursday's half-point cut to 7,5%.

Analysts said further weakness in the rand was likely to be limited given further pressure on the dollar and expectations that domestic interest rates would stay on hold for some time as the central bank monitors the effect of the rate cut.

The dollar tumbled broadly on Friday after data showing a record US trade deficit in June cast fresh doubts on the economy's recovery and its ability to draw foreign capital to fund the growing gap.

Quick Polls

QUESTION

Healthcare brokers have long complained about inflation-plus medical scheme contribution increases; but pandemic may have changed things. What will pandemic-induced changes in hospital utilisation do to medical scheme contribution increase patterns?

ANSWER

Below inflation increase for 2022, then back to inflation-plus
Long-term trend of below inflation increases
Inflation-linked hikes for 2022, then back to inflation-plus
This is a 2-year hiccup, inflation-plus increase trend remains in place
fanews magazine
FAnews June 2021 Get the latest issue of FAnews

This month's headlines

Broker and insurer collaboration should not be a one-way street
Running on outdated systems… There's risks
Policy wordings with respect to COVID-19
Death or divorce... how best to split assets
Ethical investing… principles and moral codes
Portfolio positioning will serve investors well
Subscribe now