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Rand Remains Close To Record Lows, S. Africa's FRA Curve Moves Higher

ZAR

USD/ZAR remains afloat as the wider greenback strength remains evident, with the BBDXY index hitting new session/two-month highs. The pair has been wary of testing its morning peak at ZAR19.4931, with the all-time high of ZAR19.5148 coming up next. When this is being typed, USD/ZAR trades at ZAR19.4176, up 1,655 pips on the session.

  • The precious metals index remains weak, last trading ~1% below neutral levels, after completing a double top pattern earlier this week. Spot gold trades ~$21/oz. lower on the day.
  • Local-currency bonds have extended their rout, with flattening impetus evident. South Africa's 10-year breakeven inflation rate sits at 7.11% at typing. Hawkish SARB repricing continues, with the local FRA curve shifting higher.

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