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Rand Advances, Outperforming EMEA Peers

ZAR

USD/ZAR has sold off and while the move has been facilitated by broader greenback losses, the ZAR fares better than any of its EMEA peers. The rate last operates at ZAR18.2655, down ~2,080 pips on the session, testing its 50-DMA (ZAR18.2542) with eyes on the ZAR18.00 figure.

  • The BBG Commodity Index has shed ~0.9% today, printing its worst levels since January 2022. The Rand may have taken shelter in the relative resilience of precious metals, with the relevant subindex rising ~0.3%.
  • Local-currency bonds are firmer, with the curve running slightly steeper. South Africa's 10-year breakeven inflation rate has slipped to 6.53%.

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