Declining Platinum Prices Hurt the ZAR


USD/ZAR was above 14.00 yesterday, marking the all time high as the pair continues to be under pressure from a set of factors.
First, the US dollar is still a threat to emerging currencies as the FOMC hike this year remains a possibility.
Second, a recent rout on equities increases risk aversion and that does not help currencies like the ZAR, BRL or TRY.
Finally, commodity prices keep declining and in case of the ZAR platinum prices that are down to a neighbourhood of 900$/oz are a burden.

While we think platinum may bottom out in months to come it must not be the nearest future.
Meanwhile we have just received the data on the labour market that showed employment is decreasing at a higher pace.