USD/ZAR to correct towards August lows around 18.40 in Q1 2024 – CIBC
|As investors see value in high-yielding ZAR assets, economists at CIBC Capital Markets expect the USD/ZAR pair to decline towards the 18.40 mark.
Ongoing appetite for high-yielding paper
While the market remains mindful of ongoing capacity pressures, potentially risking a final rate hike (although, we assume that we are already at terminal), signs of a graduated upturn in leading indicators, allied to still elevated real yields and elevated spreads versus UST provide potential appetite for international investors.
Ongoing appetite for high-yielding paper, albeit that remains on the proviso that inflationary pressures remain contained, provides scope for USD/ZAR to correct towards August lows around 18.40 in Q1.
USD/ZAR – Q4 2023: 19.15 | Q1 2024: 18.40
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.