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Citigroup booked a profit of 1.26% of notional value on its three-month USD/ZAR put spread between R14.00 and R14.50, which it had bought on January 20. The rand had touched a new one-year high of R14.43 in thin trade.
Citi said weak growth and fiscal pressures could eventually weigh on the currency.
Profit-taking by a major bank can signal that the rand's rally is maturing, which could mean less support for the currency and higher local feed import costs later. The direct effect on feed prices is small.
moneyweb.co.zaOlivia Raimonde, ReutersFeb 16, 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.
