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MUFG analysts expect USD/ZAR to fall, arguing the rand has lagged other emerging-market currencies and is one of the weakest EM currencies this year at about -1.0% versus the dollar. They cite energy supply restrictions and speculation about a central bank mandate change as drags on sentiment.
MUFG views the rand's valuation as attractive for a catch-up rally.
A forecast rand recovery would lower the dollar cost of South African imports, including feed ingredients. The outlook depends on Fed and other central bank decisions that could move the dollar broadly.
octaafrica.netJan 27, 2023Not 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.
