After scraping its lowest value since the middle of April 2009 following a 2.4 percent dive on Monday, the monetary unit of the largest economy in the African continent edged higher.
“If we get a large slump in investor confidence there is no reason why the dollar-rand exchange rate couldn’t test 10,” foreign exchange strategist Christian Lawrence with Rabobank in London told The Wall Street Journal on Tuesday. “The domestic backdrop is going from bad to worse and it’s hard to see anything to like about the rand in the long-term, even if it steadies in the short-term.”
Akin to counterpart currencies from emerging markets, the rand tracks global investor sentiment, typically following its peaks and valleys.
The performance of the currency has been pinched since August of last year when police shot and killed 34 striking miners at a platinum mine near Johannesburg, prompting strikes that continue into this year.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.