Citigroup’s bearish call goes awry as rand surges
Analysts caught off guard as SA’s currency rises to a four-month high
15 July 2020 - 19:23
Citigroup booked a loss of almost 5% in three weeks in a hypothetical trade betting against the rand. It may not be the only one, as the currency’s advance to a four-month high catches many analysts by surprise.
The rand has strengthened 5% in July, leading emerging-market peers amid a risk-on mood fuelled by central-bank stimulus, news of positive vaccine trials and a solid start to the US earnings season. The weakening dollar is also pushing investors towards higher-yielding assets, Citi strategists led by Luis Costa said in a client note...
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