South Africa’s rand set for longest winning streak since 2002
South Africa’s rand is on a weekly winning run not seen in more than two decades as elevated precious-metal prices and an improving economic backdrop drive gains.
The currency is on track for its eighth straight weekly advance against the dollar, which would be the longest streak since December 2002, according to data compiled by Bloomberg. It’s strengthened 6.1% over the period.
While record gold and silver prices have supported rand gains, economic reforms and a cautious central bank have also helped. Policy makers adopted a lower inflation target last year, boosting confidence that the country will maintain its interest-rate advantage over the US.
“Possibly, the main cyclical factor is the commodity tailwind,”, said Burak Baskurt, chief emerging markets strategist at BNP Paribas. “But structural factors mostly explain the sharp appreciation.”
Data next week may confirm that inflation has peaked, according to Bloomberg Economics. With the policy rate at 6.75% and annual inflation seen at about 3.6%, South Africa’s real interest rate is above 3%, offering an attractive real return.
“We see further gains for the rand and expect rates and bonds to rally further due to low inflation,” Societe Generale strategists including Phoenix Kalen and Marek Drimal wrote in a note Friday.
The gains extended beyond the currency. South Africa’s benchmark equity index has risen over 2% this week, hitting a record high as mining shares rallied.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Stewarts & Lloyds is a leading steel, tube, and engineering product supplier in South Africa.
VISIT SHOWROOM
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
