Currencies

[#1]

When the $ weakened vs. the Euro, the R.weakened vs. the $. Now the $ Strengthenes vs. Euro, the R.strengthens vs. the $. I don't understand. Any helpers?

[john_1]

Currency markets are for the dogs. Rather just focus on what a weak rand does to The diffrent components of the JSE. and visa versa.

[#3]

The direct proportionality between the rand and dollar can be denoted as R = k$ where k is a non-zero constant. this relation is often denoted as R ä $. The inverse proportionality of the rand to the Euro can be denoted as R = k/å. Thus it can be said that R = k$ = k/å. Cos they eat so good.

[#4]

There is no rule that requires any currency to be fixed in value to any other currency.
Rather look at currencies as shares on a stock exchange, with each one having a fluctuating value of its own. Each currency is like the share value of a whole country. The thing that makes it a bit complex is that you can choose the base currency with which you value the share under question. Of course, the base currency also fluctuates according to perceptions of that particular country's value.
Therefore, if the USD/ZAR goes up one day while the USD/Euro drops, then it's not a foregone conclusion that the reverse has to apply in the same proportion some other day.

[#5]

Thanks AvS,I did not expect the currencies to be linked but found it strange that there could be a reverse correlation in percieved values.

[DCTrader]

It's like the correlation between the quality of your chicken feed and the happiness of your chickens... they taste so good cos they eat so good!

[Starsky]

any arbitrage opportunities ??