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<\/a><\/p>\nThe rand has shrugged off local volatility and poor economic fundamentals, strengthened considerably in the first half of September.<\/p>\n
According to Bianca Botes, treasury specialist at Peregrine Treasury Solutions, the rand seems to be ‘star struck’ by global markets as all elements move in its favour.<\/p>\n
“The past two weeks have seen markets turn from skittish and risk averse, to an emerging market dream,” she said, adding that the currency was still far from ‘safe’, however.<\/p>\n
The local landscape remains unchanged, with tension still brewing in the streets of the major metropolitan cities as a result of attacks on foreigners, as well as protest action against gender-based violence.<\/p>\n
On the economic front, manufacturing remains under pressure, adding only 0.4% month-on-month in July, undershooting expectations of 1.2%, while business confidence continues to decline, reaching 89.1 points in August.<\/p>\n
Mining production numbers for July indicated a 2.4% increase while gold production lost 13.1% year-on-year in August.<\/p>\n
“It is clear that the rally in the rand is in no way a result of local elements. Rather, the improvement witnessed in the local unit over the past two weeks can be attributed to key global factors that are driving risk appetite – continuous monetary easing by central banks, and moves in trade tension between the US and China,” Botes said.<\/p>\n She also noted that while the stronger rand is certainly helping to restore some positive sentiment locally, a word of warning would be in order.<\/p>\n “The rally in the rand, although it can be expected to extend even to around the R14.20\/$ mark should the favourable environment persist, would not be sustainable in the longer term.<\/p>\n “We urge those purchasers looking to acquire foreign currency not to become too greedy, as the rally will eventually run out of steam, and they might end up missing a fantastic opportunity,” she said.<\/p>\n Here is how the current fuel price adjustments could reflect for October:<\/p>\n<\/a><\/p>\n\n\n
\n Fuel (Inland)<\/th>\n September Official<\/a><\/th>\n October Expected<\/th>\n<\/tr>\n \n 95 Petrol<\/td>\n R16.03<\/td>\n R15.92<\/td>\n<\/tr>\n \n 93 Petrol<\/td>\n R15.83<\/td>\n R15.59<\/td>\n<\/tr>\n \n 0.05% Diesel (wholesale)<\/td>\n R14.59<\/td>\n R14.70<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
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