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Rand Appreciates Further

ZAR

USD/ZAR has extended losses, outpacing the downswing in the BBDXY index, with the rand sitting atop the G10 pile. The rate last deals at ZAR19.4349, down 1,925 pips on the session, with support from May 24 low of ZAR19.1352 in sight.

  • Demand for the rand might stem from the perception that it is looking cheap, which was fanned by the research notes circulated by Goldman Sachs and Credit Agricole. Both suggested that the currency might stage a recovery in the coming months after its recent sell-off to record lows.
  • Eyes are still on the BRICS Foreign Ministers summit, with participants looking for fresh hints on how South Africa's diplomatic balancing act might unfold from here.

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