The rand’s comeback against the dollar this month will run out of steam as US rates rise and the trade war between the world’s two biggest economies weighs on global growth, according to the most accurate forecaster of the South African currency. The rand has gained 2.2% against the greenback since the beginning of July, to about R13.39/$ on Tuesday. Any further advance should be seen as a dollar-buying opportunity, according to Rabobank, which tops Bloomberg’s latest ranking for rand-dollar forecasters. It predicts the South African currency will end this quarter at R14.20, a slide of about 6%. "The rand is under renewed selling pressure amid fading positive market sentiment," said Rabobank’s London-based emerging-markets currency strategist, Piotr Matys, whose forecast for the currency is more bearish than the median of R13.46 in a Bloomberg survey. "The prospect of a full-scale trade war remains the main risk factor for the rand and its peers." The rand slumped 14% in the second ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.