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Investec's chief economist said the rand's outlook is more optimistic after the new government was formed, which lowered South Africa's political risk premium. The rand had strengthened sharply from R19.27 before the election to R17.89 but weakened to about R18.53 in July after the central bank's inflation forecast cut.
Lower political risk supports the rand and reduces the local cost of dollar-priced imports, while expected rate cuts in both countries limit how far the currency can strengthen.
dailyinvestor.comBianke NeethlingJul 30, 2024Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
