Today the rand traded at levels not seen for seven weeks.
The local currency took impetus from the release of June's consumer inflation figure. This came in slightly less than expected.
Not only that, it looks like the rand is benefitting as investors take their money out of Russia.
Let's take a closer look at what's going on with the rand…
The rand hits a seven-week high
After gr... ››› more
Earlier today, Stats SA released its consumer price index (CPI) for June. The data showed that it remained at the same level reported in May.
The reported rate was slightly lower than economists forecast.
Let's take a closer look at what the data revealed…
Inflation was slightly less than forecast
Looking at consumer inflation on a year-on-year basis, it “was steady at 6.6%” last m... ››› more
Since the South African Reserve Bank hiked interest rates last week, apart from a slight wobble, the local currency is looking stronger.
The rand continues to strengthen. And yesterday, it hit a three-week high against the dollar.
Let's take a closer look at what's spurring the rand on…
A slight rise in US inflation helped the rand gain against the greenback
Yesterday, the rand took a ... ››› more
The metalworkers strike is now in its fourth week. But it looks like an end is in sight after employers accepted a new wage deal today.
The National Union of Metalworkers of South Africa (NUMSA) and other unions have until the end of the week to accept the new deal.
But the employers' representatives say the deal comes with a cost. Let's take a closer look…
The new wage deal sees wage h... ››› more
Last week the SARB raised rates by 0,25%. There was no clear consensus before the decision with a little over half of all the economists surveyed predicting no change. I would like to point out that I called for a 0,25% hike in my last update. Despite the fact that the economy remains weak, the SARB's primary mandate remains price stability, in other words fighting inflation. Given the fact that i... ››› more
Over the weekend, it emerged that citrus fruit inspectors discovered a case of black spots in a consignment of fruit, which arrived in the European Union (EU).
This isn't good news for the country's citrus industry. Last year, after the discovery of several cases, the EU implemented new stricter rules for imports from South Africa.
Let's take a closer look at what happened and the implicatio... ››› more
Yesterday it emerged that the six workers unions involved in talks have lowered their wage demands to the employer representatives.
More than 220,000 workers downed tools on 1 July. The strike has already led to stoppages in production at some car manufacturing plants.
Let's take a closer look at the new demands…
Talks over the weekend could bring an end to the metalworkers strike
Ove... ››› more
The rand has started the week slightly stronger against the dollar.
The local currency appears to still be glowing from the Reserve Bank's decision to hike interest rates last week. This is in the wake of geopolitical tensions in Ukraine and the Middle East.
Let's take a closer look at what's going on with the rand and what could lie ahead this week…
The rand is benefitting from an in... ››› more
Yesterday, following the announcement by the Reserve Bank that it was raising interest rates by 25 basis points, the rand rallied. But the rally was short-lived as a Malaysian airliner came down over Ukraine and tensions continued to mount in Israel. But the rand has recovered this afternoon. Let's take a closer look at what's going on…
The rand looks slightly more attractive to traders
Inve... ››› more
Earlier today, Stats SA released its retail sales data for May. The data showed that retail sales grew again for the month.
The growth far exceeded expectations.
Let's take a closer look at what the data revealed…
Retail sales grew 2.4% in May
Retail sales in South Africa “grew by 2.4% year-on-year,” says MoneyWeb. This was far higher than expectations.
Stats SA also revised its... ››› more
The rand continues its battle to gain some footing against the dollar. The local currency is suffering as the metalworkers strike continues into its third week.
The strike has already resulted in some car makers shutting down production as they struggle to source parts.
But with the South African Reserve Bank announcing the outcome of its monetary policy committee meeting tomorrow, its decis... ››› more
It doesn't look like there's any respite in store for South African motorists. Earlier today, the Automobile Association (AA) said it expects another hike at the beginning of next month.
This follows another hefty hike two weeks ago.
So how much more can you expect to pay at the pumps? And why is the price of fuel becoming more expensive?
Let's take a closer look at what's going on…
... ››› more
As the strike by metalworkers enters its third week, a speedy resolution doesn't look likely. Talks have reached a deadlock.
The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) announced earlier today that it's withdrawn its latest wage offer.
The National Union of Metalworkers of South Africa (NUMSA) rejected the final offer by employee representatives on Sunday.
... ››› more
Last week was rather volatile as local and international news kept the market under pressure. On the local front, the NUMSA strike had its first full week. When the strike first started, I had expect it to be reasonably short as it seemed that a compromise increase of about 10% would be acceptable to both parties. However, as the week progressed, I have changed my view.
No end in sight
The... ››› more
Later this month, the International Monetary Fund (IMF) will release its global outlook. And from comments made by an IMF official, South Africa is down for another cut to its economic growth forecast. Let's take a closer look at what's going on…
Electricity supply issues and strikes remain a cause for concern
It appears the main reasons for another cut to the country’s economic growth for... ››› more
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