- USD/ZAR: Rand will remain fragile on geopolitics – ING
Market news
19 June 2023
USD/ZAR: Rand will remain fragile on geopolitics – ING
The Rand has recovered well after USD/ZAR nearly hit 20.00 in early June. Economists at ING discuss ZAR outlook.
Geopolitics recommends caution on the Rand
Geopolitics may discourage investors chasing Rand gains. In August, South Africa hosts a summit of BRICS leaders. Expect to hear more on the story of possible South African arms sales to Russia – and US Congress questioning trade ties.
Weak growth (0.5-1.0% over coming years) and a current account deficit in the 2-3% of GDP area will hold ZAR back.
USD/ZAR – 1M 19.50 3M 19.00 6M 18.50 12M 18.00
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