Rand back over R14/$ and getting weaker in run-up to election, poll shows
The currency has gained more than 10% in the past two months due to better sentiment towards emerging markets
The rand is expected to erase about a third of the 10% gain made in the past two months in the run-up to the May election, as strong volatility rattles the currency, a Reuters poll showed on Thursday. The median forecast of more than 30 currency strategists polled between November 30 and December 5 suggests that the rand will have fallen about 3% in six months to R14.33/$, better than the R14.67/$ expected in November.
Strategists were almost evenly split whether the rand will be closer to their fair value estimates this time in 2019, with most suggesting the rand was correctly trading firmer than R14/$ until about 12pm on Thursday. The currency has gained more than 10% in the past two months due to better sentiment towards emerging markets. That led to hopes in November that the currency had room to gain a further 2% by this time in 2019. Still, “the rand is expected to be volatile with the upcoming elections, due to continuing structurally low South African economic growth a...
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