# SA FX Insight: Rand: The anomaly (rand vs. default risk)

> Nedbank analysts say the rand has weakened about 8% against the dollar since February even as South Africa's sovereign CDS spread has compressed, an anomaly also seen in other emerging markets. They keep a 14.00-14.50 trading range and expect central bank decisions and Moody's review to drive the next move.

- Date: 2019-03-08 · published 2019-03-08T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/60383-sa-fx-insight-rand-the-anomaly-rand-vs-default-risk
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

The currency view indicates limited near-term weakness, which means feed import costs in South Africa are unlikely to shift sharply from currency moves alone.

## Read by commodity

- USDZAR: neutral

## Sources

- nedbank.co.za: https://www.nedbank.co.za/content/nedbank-crp/desktop/gt/en/reports/Economics/sa-fx-insight--rand--the-anomaly--rand-vs--default-risk-.html

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