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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.

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QUESTION

Do you believe this is the toughest period for financial advice in many years?

ANSWER

Yes, it’s hard to navigate the challenges and difficult to adapt. I’m struggling.
No, I have managed to navigate the challenges and have adapted. I’m good.
50/50. I just feel like whether we like it or not, we have to ready ourselves for change… be resilient and scale for the future. It’s not about survival of the fittest anymore but survival of the quickest. We just have to move on with life.
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