Forex analysis 2015 - USD/ZAR - Live Rate, Forecast, News and Analysis

The average exchange value during that period of history was 4. The highest rate was The lowest was 0.

Trading the South African Rand

The market high was attained in January, of The market low was achieved in July of Recent rates experienced in April of are high relative to the historical 4. This page provides a five year chart forex analysis 2015 a forecast for the South African Rand.

Rand Devaluation: Impact on South Africa Economy

For links to longer term charts, look at the links under the five year chart above. Equally important is the domestic interest rate.

If it is high it is likely to attract foreign capital, causing the exchange rate to strengthen. But high inflation forfx wipe out the benefit of high interest rates to foreign investors.

These include a current account deficit. The current account deficit gets bigger when a country spends more on foreign trade than it is earning and forex analysis 2015 to borrow capital from foreign sources to make up the difference.

This implies that a country requires more foreign currency than it is getting through sales of exports, and it supplies more of its own currency than foreigners demand forex analysis 2015 its products. This excess demand for foreign currency leads to depreciation in the value of a currency.

Factors such as political instability and poor economic performance can reduce investor confidence. This inevitably forces forrex investors to seek out stable countries with strong economic performance. Thus, a country that is perceived to have positive attributes will attract investment away from forex analysis 2015 perceived to have more political and economic risk.

South Africa

There is a further complication to currency movements. The buying and selling of currencies is no longer driven only by the need to facilitate trade but also by the demand for currencies as financial assets. This means that currencies are bought and stock options amount like any other asset.

Decisions by traders — to buy 2015 forex analysis sell a currency — can have a forex analysis 2015 effect. The aim was to weaken the yuan to boost its export competitiveness. This, coupled with slower economic growth, has aggravated the situation for South Africa as well as other African countries that forex live feed on oil and mineral exports to China.

Emerging markets most exposed to lower growth prospects and subdued commodity prices have seen the sharpest falls. The rand forex analysis 2015 expected to remain under pressure with many analysts predicting that it will fall further in It is not alone.

Many other emerging market currencies have been dealt the same fate. But the rand is substantially weaker than it might have been.

Firstly, the weakening currency carries the risk of pushing up inflation because imported goods are more expensive. This means analywis the South African Reserve Bank faces a difficult decision.

No ad found

It can keep interest rates low but then faces even higher inflation. This will only devalue the rand further.

Exchange Rate in South Africa

If the central bank takes forex ict aggressive action by raising interest rates, it risks stifling growth in an economy that is only growing at 1. The country is suffering from the forex analysis 2015 drought since which has increased food costs and pushed the 20115 industry into recession.

The price of white corn, a staple food in southern Africa, has more than doubled on the South African Futures Exchange in the past year. With large parts of the economy already in recession, coupled with worsening forex analysis 2015 levels and the threat of credit-rating downgradesit looks like the economy will contract.

South Africa's rand currency 'rigged by banks'

Floating exchange rate regimes, naturally, are characterised with increased volatility. Thus, like all financial assets in emerging forex analysis 2015, the perceived high political risk premium associated with these markets exacerbate the level of volatility of anapysis currencies. The currency would see volatility as along forex hsbc mauritius it is allowed to float.

So the question really is not whether there would be volatility, but rather, forex analysis 2015 much volatility would be seen over a period. In the case of South Africa, the fact that the currency is widely traded globally exposes it to frequent anallysis.

The ZAR foreign exchange rate, like most tradeable financial assets is by and large driven by demand and supply. There are a considerable number of market participants whose forex analysis 2015 determine the demand and supply dynamics in the market.

These include individuals forex analysis 2015 institutions that plan to acquire South African assets, and this include, both real and financial assets. Exporters and importers in South Africa and elsewhere that trade with the country also constitute a critical source of demand and supply of the local currency. anaysis

Description:Author: BinaryTradingClub November 21, Given the relatively high interest rates in South Africa, the currency is also a well known target for the carry.

Views:56082 Date:11.12.2016 Favorited: 3651 favorites

User Comments

Post a comment


In order to post a comment you have to be logged in.

So please either register or login.

Gukazahn #1 23.08.2017 alle 08:38 dice:
+ -
Reply | Quote
I apologise, but you could not give more information.
Taurisar #1 23.08.2017 alle 08:38 dice:
+ -
Reply | Quote
I consider, that you are not right. I am assured. Let's discuss. Write to me in PM, we will communicate.
Mikar #2 02.09.2017 alle 04:39 dice:
+ -
Reply | Quote
It not absolutely that is necessary for me. There are other variants?
Akinokora #2 02.09.2017 alle 04:39 dice:
+ -
Reply | Quote
It agree, rather useful message
Nikolabar #3 03.09.2017 alle 16:55 dice:
+ -
Reply | Quote
You have hit the mark.
Gur #3 03.09.2017 alle 16:55 dice:
+ -
Reply | Quote
Rather the helpful information
Comments is an award-winning online trading provider that helps its clients to trade on financial markets through binary options and CFDs. Trading binary options and CFDs on Volatility Indices is classified as a gambling activity. Remember that gambling can be addictive – please play responsibly. Learn more about Responsible Trading. Some products are not available in all countries. This website’s services are made available in countries such as the South Africa, USA, or to persons under age 21.

Trading binary options may not be suitable for everyone, so please ensure that you fully understand the risks involved. Your losses can exceed your initial deposit and you do not own or have any interest in the underlying asset.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 47-74% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.