The rand’s flying start to 2019 may be just the beginning, according to Goldman Sachs. The currency is heading for its biggest January gain against the dollar since Bloomberg started compiling the data in 1999. And with expected volatility near an eight-month low, traders are discounting local stumbling blocks in coming months, including a budget speech, ratings review and election. The rand has been buoyed by a more dovish Federal Reserve and hopes for a trade deal between the US and China that would ease concerns about global growth. SA’s inflation has moderated, growth is set to pick up and the government is taking steps to eradicate corruption, consolidate sovereign debt and support the ailing state-owned Eskom. “Concerns about Eskom have been weighing on South African assets, so comments from government officials about a plan to stabilise Eskom have been welcomed by rates and also forex markets,” Goldman Sachs strategists led by Zach Pandl said in a report dated January 27. “We...

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