The Rand traded between 14.34 and 15.65 to the Pound during the week of the 15th to the 19th of December. Similarly, the Rand traded between 9.52 and 10.25 to the US dollar.

After a disappointing start to the week with the Rand slipping out past the 15.50 mark, it seemed that the Rand may end on a low for year end. But as per usual the Rand had a mind of its own. It rallied back by more than 6% to end the week near the 14.40 mark.

This was on the back of some interesting world events where the Euro was mildly off parity with the Pound. The US Federal Reserve and the Bank of England both cut their interest rates with talk of just off zero interest rates could occur, this is an attempt to aid the consumer spending and revive the ailing economies. This coupled with the falling oil price has boded well for the Rand.

With the oil price dropping which has a direct influence on inflation has meant that inflation has continued to drop which has led speculation that the interest rate drops will continue into the New Year. This has increased the demand and prices of governmental bonds. Though as the speculated drops have been priced into the market there may be a slight correction if the SA reserve bank decides against the rate cuts.

Furthermore, congratulations on the Protea’s on beating the Aussies on the home ground. Let’s hope the Rand and the Protea’s can continue the good form.

Composed by Jason Cooper
:: Note: The above exchange rates are based on "interbank" rates. If you are considering a transfer then please login, register or call us for a live dealing rate.

The Australian dollar (AUD) traded between levels of AUD 1.43 and AUD 1.50 against the USD over the past week, and between AUD 2.29 and AUD 2.15 to the Pound.

This past week saw the Australian dollar gain back some strength, as the US dollar took a severe beating and the British Pound continued along the weak path it has been travelling on over the past few weeks.

Starting the week off slowly, investors waited in anticipation of a rate decision by the US Federal Reserve, which was met on Wednesday with an aggressive cut to a range of zero to 0.25, a record low.

Another low price was that of oil, which fell to the lowest levels in 4 years, as world demand for energy is expected to decrease significantly as economic production and growth slows in response to credit conditions worldwide. Oil prices tend to lead commodity prices, which could mean a decrease in resources which are an important factor in Aussie dollar movements.

Trading late on Friday was muted, as the year winds down and trade becomes very light. The Aussie closed lat in the afternoon close to the AUD 2.17 to the Pound mark. No significant data is expected to be released over the next two weeks to move the currency.

Composed by Amy Morris

:: Note: The above exchange rates are based on "interbank" rates. If you are considering a transfer then please login, register or call us for a live dealing rate.

The New Zealand Dollar (the Kiwi) started last week trading at 2.7 to the Pound Sterling and spent the first half of the week weakening to close on Tuesday at 2.76. From there the Kiwi showed a strengthening of value, to close the week at 2.538.

Both the Aussie and the Kiwi made their second consecutive weekly gains against the Greenback as the Federal Reserve Bank reduced borrowing costs as low as Zero. This would have made the returns offered by the Australian and New Zealand Financial sectors tempting to investors. The Kiwi hit a six week high against the Greenback on Thursday.

The Kiwi also gained vis-à-vis the Aussie, hitting a three week high at 84.8c per Kiwi as the Australian Reserve Bank signaled that it may slow its aggressive rate cutting.

The Kiwi bought 51 yen at one stage last week which was also a two week high. The Japanese Government forecast a 0.8% shrinkage of output (down from the expected 1.3%) and dropped its benchmark interest rate to 0.1%.

Some factors that were not very prominent in the exchange rates were the increased Risk aversion of investors, which may have applied downward pressure on the Kiwi. Standards & Poor’s said that General Electric Co’s (The largest issuer of Corporate Bonds in the US) had a one in three chance of losing their AAA debt rating in the next two years. This was widely viewed as a bad omen for the world economy. The Institute of International Finance also stated that the world economy would contract next year, for the first time in half a century.

Composed by Jannie Nel

:: Note: The above exchange rates are based on "interbank" rates. If you are considering a transfer then please login, register or call us for a live dealing rate.