\n\n\n
| #<\/th>\n | Negative influence<\/th>\n | Positive influence<\/th>\n<\/tr>\n |
|---|---|---|
| 1<\/td>\n | If SA loses S&P and Moody\u2019s remaining local currency investment grade sovereign credit, this could cause disinvestment by bond investors who can only hold investment grade bonds<\/td>\n | If SA maintains its remaining local currency investment grade sovereign credit and the rating agencies change their negative outlook to neutral, this would likely lead to a stronger rand<\/td>\n<\/tr>\n |
| 2<\/td>\n | If market participants start to anticipate monetary tightening by developed markets like USA and Europe, then they might become risk adverse and sell emerging market assets\/currencies<\/td>\n | If market participants anticipate a delay\/postponement of monetary tightening by developed markets, they might be inclined to take on risk and buy emerging market assets\/currencies<\/td>\n<\/tr>\n |
| 3<\/td>\n | If commodity prices start weakening again and this affects our terms of trade negatively, this might also cause rand weakness<\/td>\n | If commodity prices start increasing again and this affects our terms of trade positively, this might also cause the rand to strengthen<\/td>\n<\/tr>\n |
| 4<\/td>\n | If investors perceive risks are increasing in South Africa as an investment destination, this might also cause rand weakness<\/td>\n | If investors perceive risks are reducing in South Africa as an investment destination, this might also cause the rand to strengthen<\/td>\n<\/tr>\n |
| 5<\/td>\n | As the rand is usually inversely correlated to the dollar, a weaker Euro would most likely cause the rand to also weaken relative to the dollar<\/td>\n | Equally, a stronger Euro would most likely cause the rand to strengthen relative to the dollar<\/td>\n<\/tr>\n |
| 6<\/td>\n | A strong dollar against other major and emerging market currencies would also likely cause a weaker rand<\/td>\n | \u00a0A weak dollar against other major and emerging market currencies would also likely cause a stronger rand<\/td>\n<\/tr>\n |
| 7<\/td>\n | Any event that causes investors to fear a global downturn or threat to the global economy, or weaker commodity prices would likely lead to risk aversion and a weaker rand vs the dollar<\/td>\n | \u00a0Any event that causes investors to become optimistic about the global economy and higher commodity prices would likely lead to less risk aversion and a stronger rand vs weaker dollar<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n<\/div>\n \n |