CD South Africa: Minor stability returns to some Asian markets

Currencies Direct August 25th 2015 - < 1 minute read

Chinese equities have dropped by another 5% this morning; however other Asian markets have recovered — which suggests that some stability could return today. The South African Reserve Bank (SARB) said yesterday that it is primarily interested in ensuring orderly trade, and isn't signalling imminent intervention on the level of the exchange rate.

The exchange rate has a direct impact on the inflation rate, and this could lead to further rate rises from the SARB, but we'll just have to wait and see. Today sees the release of South Africa's gross domestic product (11h30) and US new home sales figures (16h00). Watch out, this could get volatile!

Commentary by Justin Lodewyk

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