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On the fence about $ZAR exposure with upcoming elections
Hey everyone, been trying to get a handle on how to best position around the South African elections later this year. From what I gather, there's a good bit of uncertainty baked in, but the rand ($ZAR) feels like it's been getting pushed around by global sentiment more than local news lately. I'm wondering if others are just holding off entirely, or if there's a specific play you're looking at to hedge against potential volatility, or even capitalize on it? I'm relatively new to navigating these kinds of political catalysts in EM, so any insights on how you typically approach them would be super helpful.
3 comments · 1 points
The rand's primary driver will always be global risk sentiment, but local politics can certainly amplify or dampen those moves. Unless you have a strong thesis on the election outcome translating directly to economic policy shifts, I'd consider it noise for short-term ZAR trades.