Some pretty clever folks believe we’re about to see a comeback as the Rand does the impossible… kick the downward trend and start clawing back territory.
In the last five years we’ve seen the Rand lose more than 50% of its value against the US Dollar, but that trend could soon be a thing of the past. Informa Global Markets analyses international trends and believes the Rand is only going to get stronger from here on out.
While there are analysts who believe the Rand will weaken further towards the end of the year, on the back of a US rates increase; Swissquote BankSA – one of the best resources for financial data for the last quarter – is of the exact opposite opinion.
“We believe that the market is overestimating the probability of Fed rate hike in December and the lasting effect if it actually occurs,” said Peter Rosenstreich from the Swiss bank.
“Risk appetite will remain strong. As long as global central banks keep the punch bowl out, investors will be forced to seek risk and yield.”