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Rand Extends Losses, Remains Worst EMEA Performer

ZAR

Spot USD/ZAR has extended gains, which has been facilitated by continued demand for the greenback, with the BBDXY index advancing. The rate last deals at ZAR18.3513, up ~2,170 pips on the day, familiar technical levels remain in play.

  • The BBG Commodity Index has shed ~1.4%, printing new monthly lows in the process. The precious metals index sits ~0.5% lower, even as spot gold sits just shy of neutral levels.
  • Local-currency bond yield curve has flattened at the margin, with 10-year breakeven inflation rate climbing to a new multi-month high of 6.57%.
  • Local headline flow has revolved around ideas on how to address the ongoing energy crisis and political tensions surrounding the matter.

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