Goldman Sachs note that "in an otherwise.......>

RAND: Goldman Sachs note that "in an otherwise range-bound week for EM

currencies (outside of the CEE), the Rand still managed to eke out a modest

outperformance relative to other high-yielding EM FX. We still see some room for

further appreciation towards our short-term 3m USD/ZAR forecast of ZAR16.50,

especially after the surprise Q1 Current Account surplus, but the path is likely

to remain volatile as the Rand maintains its tight correlation with

risk-sentiment and broad moves in the Dollar. We are more confident-despite the

acutely challenging fiscal picture-in the ability of local currency ZAR bonds to

move stronger through the day-to-day volatility, given the combination of

substantial risk premium (that increased in the first half of July), low

inflation, and the possibility to earn FX-hedged returns. And the SARB meeting

coming up, where our economists expect an additional 50bp rate cut, is likely to

further support the case for lower yields (relative to a stronger currency)."