Rand comes full circle SONA to SONA

Posted On Wednesday, 10 February 2021 12:38 Published by
Rate this item
(0 votes)

The rand has certainly been on a tumultuous ride in the 12 months since the 2020 State of the Nation Address (SONA).

Bianca_Botes

After trading below the R15/$ mark in February last year, the local unit quickly stepped off the cliff, weakening rapidly to bottom out at above the R19/$ mark in April as COVID-19 panic took hold of markets.

However, after a fairly dramatic dive, the rand then spent the next 10 months clawing its way back to its starting position below R15/ $ as we look forward to the 2021 SONA, coming full circle as global sentiment worked in the rand’s favour. With such dramatic movements, it is little wonder that traders have nicknamed the USD/ZAR pairing “the rattler”.

Examining the infographic, South Africa's lockdown restrictions appear visually to have influenced the rand's movements. But in reality, global factors such as stimulus, liquidity, risk-on sentiment and the hunt for yield have played a much larger role in the rand's strengthening over the past few months.

As local focus shifts to President Ramaphosa’s speech, we will be watching carefully for any insights into government’s economic policies, as well as how government intends to address the glaring issues at state-owned enterprises such as Eskom and SAA, which continue to weigh heavily on  the country’s already over-burdened balance sheet.

PTS_rand_infographic_sona_2021

 

Last modified on Tuesday, 16 February 2021 12:58

Most Popular

Attacq sees success with high-rise development The Mix

Sep 22, 2021
Giles_Pendleton_Attacq
Waterfall’s latest high-rise residential development, The Mix Waterfall, is approaching…

When can I cancel an Offer to Purchase?

Sep 22, 2021
News_from_Rawson_Property_Group
There’s nothing more exciting (or nerve-wracking) than submitting an Offer to Purchase on…

Serviced office space provider The Business Exchange opens in Cape Town

Sep 21, 2021
TBE_Cape_Town2
Serviced office space provider The Business Exchange (TBE) has extended operations and is…

Interest rates still on hold but scales start tipping towards a hike

Sep 23, 2021
Carmen_Nel_Matrix_Fund_Managers
The SARB Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 3.5%…

Please publish modules in offcanvas position.