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Rand Lags EMEA Peers, SARB MPR Eyed Today

ZAR

Spot USD/ZAR gains for the third consecutive day and last deals at ZAR18.2446, up ~1,100 pips on the session. From a technical standpoint, bulls continue to look for a rally towards Mar 21 high of ZAR18.6132 and Mar 8 high of ZAR18.7192. On the flip side, bears see Mar 31 low of ZAR17.6993 as their initial target.

  • The aggregate BBG Commodity Index has shed ~0.4%, giving away some of yesterday's uptick. The precious metals subindex sits ~0.2% below neutral levels.
  • Local-currency bonds are marginally firmer across the curve, while the FTSE/JSE Africa All Share Index is down ~0.4%.
  • South Africa's Leading Indicator deteriorated to 120.1 from the revised 120.9, reaching its lowest point since November 2020.
  • The SARB will publish its biannual Monetary Policy Review this afternoon.

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