In this video, we take a look at the sharp recovery in the South African Rand against the Japanese Yen.
We firstly look at why the Yen got stronger in this exchange rate at the beginning of 2020 when the Covid-19 pandemic cause stock markets to fall and safe-haven demand into Japanese Government Bonds to strengthen the Yen.
However, since stocks have staged a strong recovery, we have seen the Yen weaken against Rand.
We look at interest rate diffeentials between the two country's and why buying the ZAR/JPY exchange rate is an attractive trade for two reasons.
1.) Positive Interest rate credit of 3.62% over 12 months.
2.) Appreciation in the exchange rate of around 12%, once the exchange rate rises to it's early 2020 high of ¥7.80
We firstly look at why the Yen got stronger in this exchange rate at the beginning of 2020 when the Covid-19 pandemic cause stock markets to fall and safe-haven demand into Japanese Government Bonds to strengthen the Yen.
However, since stocks have staged a strong recovery, we have seen the Yen weaken against Rand.
We look at interest rate diffeentials between the two country's and why buying the ZAR/JPY exchange rate is an attractive trade for two reasons.
1.) Positive Interest rate credit of 3.62% over 12 months.
2.) Appreciation in the exchange rate of around 12%, once the exchange rate rises to it's early 2020 high of ¥7.80
Kayan Kalipha
