Finweek English Edition - - Online - By Greta Steyn Read more on

IT SEEMS as if there’s an eerie si­lence in the cur­rency mar­ket. The si­lence is the sound of the rand NOT crash­ing. Be­cause, if past trends were any­thing to go by, the rand should have tracked the euro and been much weaker by now.

The cur­rent fis­cal cri­sis in Europe raises the ques­tion whether the con­ta­gion will spread to SA. Why is the rand not track­ing the euro, which has weak­ened sharply be­cause of Europe’s fi­nan­cial prob­lems? Is there a chance that the fis­cal cri­sis in Europe will spread to the US and Bri­tain as well, lead­ing to a sec­ond wave of global re­ces­sion? Will there be global risk aver­sion?

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