Strategists at Credit Suisse raise their expected range for USD/ZAR slightly to 14.50-15.50 and like to buy dips around 14.40.

USD/ZAR downside is limited

“We raise our expected range for USDZAR slightly to 14.50-15.50 (from 14.00-15.00) and drop our short-term target of 14.30.”

“A few factors suggest that USD/ZAR downside is limited: the current account surplus is narrowing, the scope for repatriation flows looks limited and carry support is not large enough to trigger substantial inflows.”

“We now see value in buying USD/ZAR on dips below recent lows of 14.40.”