# USD/ZAR: Room for the South African Rand to play catch up with ongoing rally in EM FX – MUFG — Octa

> 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.

- Date: 2023-01-27 · published 2023-01-27T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/38085-usd-zar-room-for-the-south-african-rand-to-play-catch-up-with-ongoing-rally-in
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

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.

## Read by commodity

- USDZAR: bearish ▼

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/1020726/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.