34 days ago • Posted by William Ramstein

South African rand could depreciate against the USD

The good news for the Rand is that commodity prices have never been so high, the bad news is while materials is a big part of the South African economy, its currency is more affected by changes in Treasury yields. This is shown through a weakening correlation between the Rand and industrial metals indices and a strengthening one between the Rand and yields. The USDZAR is forecasted at 15 Rand per $1, but could fall back to 17 Rand per $1 on treasury yield pressures, and slowing demand from Asia. Source: Bloomberg 

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