The rand is more stable than any time since 1999 and poised to strengthen

We’ve become used to the rand being just about the most volatile currency in the world. However, 2014 is shaping up be the least volatile year for the rand since 1999, according to John Cairns, Currency Strategist at RMB.

“The range between the rand's highest and lowest points so far this year is only the 13th biggest of the major currencies," says Cairns. “It’s usually top of the log but, so far, the range has been just over R1. The rand's average range is around R2.65.”

A more stable rand is good for the economy as it gives businesses certainty.

“We believe the rand is undervalued,” says Cairns. “Exports are growing at a relatively decent pace while import growth has really slowed down. The balance of payments (i.e. difference between imports and exports) should be correcting.

“We expect the rand to strengthen to R10.50 to the US dollar, but there are lots of risk to this prediction,” admits Cairns. “It depends very much on what the US Fed has in store for us.”

Cairns believes the rand will strengthen. Currency Strategist at Barclays Africa Michael Keenan (sort of) agrees. Click here to learn more or here to learn why petrol will be much cheaper by Christmas if Cairns' and Keenan's forecasts pan out.

Listen to the Soundcloud clip for more detail.

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Best bank ad ever? Andy Rice reviews Investec’s “you’re more than data”

Best bank ad ever? Andy Rice reviews Investec’s “you’re more than data”

The Money Show’s Bruce Whitfield interviews the advertising expert about the best and worst new advertisements.

Private school company Curro Holdings profits up 31%

Private school company Curro Holdings profits up 31%

The Money Show’s Bruce Whitfield interviews Curro Holdings CEO Andries Greyling.

Save 20% on groceries (buying together is power!)

Save 20% on groceries (buying together is power!)

Struggling to make ends meet? Bruce Whitfield interviews Nokwethu Khojane, cofounder of group buying company Lakheni.

Is the qualification real? Check out this ingenious, real-time verification tool

Is the qualification real? Check out this ingenious, real-time verification tool

The Money Show’s Bruce Whitfield interviews Logan Attorneys Consumer Law Specialist Stephen Logan.

Why the rand is getting stronger (and how much stronger it can get)

Why the rand is getting stronger (and how much stronger it can get)

Michael Keenan, Currency Strategist at Barclays Africa, discusses our volatile currency.

Why petrol will be (much) cheaper by Christmas (if the rand holds)

Why petrol will be (much) cheaper by Christmas (if the rand holds)

Oil is getting cheaper despite the Middle East going to hell in a hand basket. Here’s why…

Popular articles
It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

Gospel singer Sipho Makhabane explains how Sfiso Ncwane died

Gospel singer Sipho Makhabane explains how Sfiso Ncwane died

Makhabane says Ncwane was feeling weak yesterday and his wife phoned paramedics to check on him.

How Tracey Chambers is helping unemployed moms become entrepreneurs

How Tracey Chambers is helping unemployed moms become entrepreneurs

The Clothing Bank gives women access to discounted merchandise and 500 hours of training in money management and business skills.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

5 ways the NSFAS funding model will change in 2017

5 ways the NSFAS funding model will change in 2017

The National Student Financial Aid Scheme (NSFAS) will pilot a new funding model in 2017. NSFAS chairperson Sizwe Nxasana explains.