USD/ZAR rallied recently to a new year-to-date high. For now, economists at Credit Suisse expect repatriation flows to keep the pair fairly stable in the 17.60-18.60 range.

Rising carry and still elevated commodity prices to mitigate weakness in the rand

“We raise our short-term target range for USD/ZAR to 17.60-18.60 (from 17.00-18.00).”

“For now, the weakness in the rand is likely to be mitigated by factors such as rising carry and still elevated commodity prices. Additionally, we see scope for meaningful repatriation flows following the large rally in USD/ZAR in recent months.”