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Rand Loses Ground Ahead Of SARB Monetary Policy Decision

ZAR

USD/ZAR has crossed above the 19.00 mark ahead of the SARB rate decision. Bloomberg consensus is looking for another pause, with two dissenting analysts expecting a 25bp hike. When this is being typed, the rate sits at 19.0079, 1,670 pips higher on the day.

  • The latest upswing was facilitated by a move higher in the BBDXY index. The greenback has been supported by firmer US Tsy yields as well as equity market weakness.
  • Precious metals keep losing altitude and last operate 1.9% below neutral levels, with gold shedding ~$14.5/oz. today.
  • South Africa's FTSE/JSE All Africa Index has fallen 2.3% today, posting its biggest loss since August 2.

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