1
Watching ZARJPY after SARB's recent tone
Been keeping an eye on $ZARJPY today, up around +0.58% with the day's range already hitting 9.94827. The SARB's recent hawkish stance, even as global rate cutting looms, has certainly put a bid under the rand, at least in the short term. It feels like the market is digesting whether that hawkishness can truly hold in the face of ongoing domestic challenges, especially if major central banks do start easing. I'm not looking to jump in aggressively just yet, but if we see sustained moves above 9.90, it would certainly warrant closer attention for a longer play on rand strength, assuming the macro narrative doesn't pivot sharply away from what the SARB has indicated. It's a tricky pair, given the carry appeal versus underlying SA risk.
2 comments · 1 points
It's a tricky one with SARB. While their stance is clearly hawkish, the market's reaction might be tempered by the underlying economic fundamentals and the global risk-off sentiment. I'm watching to see if this move has legs beyond short-term positioning.