Concerning the rand:
The rand dropped because of the interest rate differential.
Inflation was 3.1 and Repo was 5.5 at the time when the rand was 6.5/$ (2011)
Now inflation is 6.1 and the repo is still 5.5. No wonder the rand is 8.xx/$
Next year 2012 when the SARB finally raises interest rates the rand can strengthen.
The rand dropped because of the interest rate differential.
Inflation was 3.1 and Repo was 5.5 at the time when the rand was 6.5/$ (2011)
Now inflation is 6.1 and the repo is still 5.5. No wonder the rand is 8.xx/$
Next year 2012 when the SARB finally raises interest rates the rand can strengthen.
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