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ZAR relation to rates?

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scandal
Super Contributor
can anyone enlighten me regards the ZAR strength/weakness in relation to interest rates. It just strengthened against the USD? How come if we are expecting a rate cut?
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2 REPLIES 2
Not applicable
The interest/exchange rate parity means that any difference in yields and exchange rates will promptly be eroded by arbitrageurs. The recent strength of the rand down to 7.20 was for no reason. Hence the violent move back north.
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Not applicable
As i understand it an interest rate hike is likely to result in increased rand strength iff all else remains the same
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