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Bloomberg analysis found that the rand's correlation with industrial metals prices has weakened, while its inverse relationship with U.S. Treasury yields is near its strongest in four years. Foreign investors pulled more than $3.3 billion from South African markets so far in 2021.
Rand moves are being driven more by U.S. rate expectations than by commodity prices, so commodity strength does not reliably support the currency. Currency swings affect the local cost of dollar-priced feed imports.
moneyweb.co.zaColleen Goko, BloombergMar 10, 2021Not 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.
