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The rand traded at R15.93 per dollar on April 28, about 0.4% weaker, as the US dollar hit multi-year highs against a basket of currencies. The rand had already lost more than 6% the previous week amid Eskom power cuts and floods.
Markets are pricing aggressive Fed tightening, with a 50 basis point move expected in May.
Dollar strength driven by Fed tightening expectations raises the local cost of imported feed inputs in South Africa and tends to weigh on dollar-denominated grain and meal prices.
moneyweb.co.zaAlexander Winning, ReutersApr 28, 2022Not enough comparable past events yet for a historical read.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
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.
