# Where the rand is heading over the next few months – BusinessTech

> 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.

- Date: 2022-10-31 · published 2022-10-31T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/39424-where-the-rand-is-heading-over-the-next-few-months-businesstech
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

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.

## Read by commodity

- USDZAR: bearish ▼

## Sources

- businesstech.co.za: https://businesstech.co.za/news/banking/639339/where-the-rand-is-heading-over-the-next-few-months/

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