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The Rand has weakened quite considerably recently, which should have some impact on the petrol price. This time it is not so much to do with internal factors, such as the resignation of the Reserve Bank Governor, Gill Marcus.
The Dollar has improved in strength against basically every currency in the world and even the Pound and the Euro have shown weakness against the Dollar. The US economy is expanding again, it is growing and one of the advantages of a strong Dollar, to counteract our petrol prices, is when the Dollar does improve, things that are sold in Dollars generally get cheaper and luckily oil is one of those things. The American economy has improved so much faster than the economies of the other countries in the world that they are now beginning to think about increasing their interest rates, and that confidence is exactly what has made the Dollar the most popular currency in the world at the moment, which is why everyone is buying it and selling the other currencies. Obviously, it also hurts American companies as well – for example, Ford Motors make a lot of money from cars that they sell overseas and as a result of the strengthening Dollar they have just said that their profits are expected to decline from US$7 billion to US$6 billion in their next reporting period. That in turn affects the American stock market, so hopefully we will see some interest in American in not having too strong a Dollar because it is sad to see the Rand getting walloped like it is at the moment – but we must bear in mind that it is not just us – it is countries all around the world whose currencies are weakening against the Dollar now.
Posted by Michael de Broglio on Tuesday 07-Oct-14
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Comments
Elektra said:
on Monday 20-Oct-14 10:34 AM
I know this blog was issued a while ago, but happy to say that petrol prices are coming down, and it was noted they will continue to decrease into the new year. Sigh of relief.
As for overseas traveling, I will need to watch my spending and save a little more each month. Sad sigh.
Lourien said:
on Friday 17-Oct-14 03:39 PM
Everything is getting more expensive by the day, and for many people an overseas trip will only be a dream as very little people will be able to afford any in our country especially with all our high Taxes and levies that are going up more than down.
Brenda said:
on Monday 13-Oct-14 04:40 PM
As much as I love my Country, I am starting to wonder if its not maybe a good idea to spread my wings and embark on a ludicrous journey. Cost of living in South Africa is just getting way too expensive and it is very difficult to try and keep up with all the tax, fuel, electricity, water and food increases, and sadly, it is going to get worse.
I fear the near future now, its incredibly scary!!
Marisa said:
on Thursday 09-Oct-14 11:41 AM
That it what happens if you just spend as you please on Zuma's little "Dorp" for his family,building a swimming pool for incase of a fire (like if the house will really jump into the pool) and don't even get me started on e-toll witch is also corrupted
Clare said:
on Thursday 09-Oct-14 08:56 AM
This is no surprise, but the news this morning 09.10.2014 said that the rand has come up a little. South Africa doesn't really no what they doing with the money, oooo wait lets make the governments house worth more the Millions
kaylee said:
on Thursday 09-Oct-14 07:12 AM
Another stumbling block to taking overseas trips!
Joyce said:
on Wednesday 08-Oct-14 04:16 PM
I think it would be great if Americans were to share the economy growing tips with the countries around the world who are suffering economy weakness
Lucretia said:
on Wednesday 08-Oct-14 01:56 PM
I wish the American's would come over and show us how to grow our own economy - something that South Africa is failing dismally at. In terms of travel, yes, it definitely puts a dampen on travelling abroad which is something I would love to do again.
Jade said:
on Wednesday 08-Oct-14 08:20 AM
This also means that travelling overseas will be a lot more expensive which is not good news for those of us who have an insatiable wanderlust.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!