The Rand is trading at a 5 year low and interest rates are good. The risk here is that it could very well continue to trade downward.
The Kiwi dollar is going through what looks like a correction phase, down from about 81.5 to about 80 this week. Interest rates are also favorable at the moment.
I’m thinking about moving some cash into one, possibly both of these and wanted to start a discussion here to see what the general concensus amongst f.com investors is.
No idea on either currency, but SA risks seem to be growing. GDP likely slower on power shortages and slower export growth, government shifting to tighter monetry policy and the political risks are growing rapidly with the ANC increasingly seen as corrupt. I’d say that all points to a further slide for the Rand.
[quote=“Huang Guang Chen”]No idea on either currency, but SA risks seem to be growing. GDP likely slower on power shortages and slower export growth, government shifting to tighter monetry policy and the political risks are growing rapidly with the ANC increasingly seen as corrupt. I’d say that all points to a further slide for the Rand.
HG[/quote]
Yes, HG, that was my feeling, as well. The power shortages in particular have me thinking that it will keep trending down. Want to wait and see about the NZD and see if my hunch about a correction is true, but that and the AUD is where I’m leaning at the moment.
I’ve been enjoying the NT vs Kiwi rates and appreciation recently. there was a correction a few months ago which knocked us back a bit but I think the outlook is good… still not as good as buying another apartment here has been, though. very decent interest rates for buying property here…
Yeah, I went with Kiwi and Australian in the end. So far I am quite happy with the results. Bought near the bottom of that correction and am quite happy with the results on both. I’ve been reading that both are bullish in the short term, bearish in the long…so tell me something I don’t know, right?
Toyed with buying a rental property here. The return on investment is definitely worth while, but I think I’m going to wait until things calm down a bit; a little expensive right now for my tastes. A bubble can only get so big before it bursts, right? Hope it works out for you, though. Good luck!