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Absa forex strategist Michael Keenan says the rand is fundamentally undervalued and expects it to recover to R16.00/USD by the end of Q1 2023. The rand traded at R18.37 to the dollar on 31 October after weakening as the dollar regained ground ahead of the US Federal Reserve decision.
Absa attributes the rand's weakness to falling commodity prices and capital outflows.
This is a forecast rather than a new event, but a stronger rand would lower South African import costs for feed ingredients. The outlook depends on the Fed path and commodity prices, so buyers should treat it as a view rather than a price driver.
businesstech.co.zaOct 31, 2022Not 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.
