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The rand has gained about 5% against the dollar in February, the strongest performance among more than 140 currencies tracked by Bloomberg. The rally has been driven by a weaker dollar, US stimulus expectations and a global search for yield.
Analysts warn that traders are overlooking South Africa's fiscal problems, including rising government debt and state-owned enterprise risks.
A strong rand lowers the local-currency cost of imported feed ingredients, but a sharp reversal driven by fiscal concerns could raise those costs quickly. The story is mainly about currency risk rather than physical feed supply.
moneyweb.co.zaColleen Goko, BloombergFeb 15, 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.
