The South African ZAR breaks to 4yr lows

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The South African ZAR breaks to 4yr lows as banking sector under pressure and threat of rate cuts comes as inflation plummets for this commodity dependent economy.

Image courtesy Chris Eason: http://www.flickr.com/photos/mister-e/ ABI bank reported today poor numbers, no dividend, and concerns on credit.  The macro continues to ride lower with gold prices adding to the pressure coming from the labor strife.

The ZAR which is arguably the most volatile of core emerging market currencies and will get no love if the central bank cuts rates this week when they meet Wednesday.

South Africa is a still a crowded market, especially retail and those companies who have exposure to sub-Sahara Africa.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks


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