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Thoughts on ZAR weakness given the current risk-off tone?
It's interesting to see $ZARUSD still softening at 0.06113968 even with general risk appetite seemingly fluctuating. My initial thought was that a flight to safety might give some temporary reprieve to EM currencies due to carry, but clearly not here. Wondering if it's more about local South African dynamics or if the broader USD strength narrative is just overpowering everything right now. Keeping an eye on $GLD at 372.35 as a potential safe haven hedge if this risk-off trend accelerates, but the $ZARUSD move feels a bit outsized given the daily range.
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It's a good question. While global risk-off certainly plays a role, I'd lean towards local factors and ongoing structural challenges in SA as the primary drivers for ZAR's continued weakness, even when one might expect some carry trade interest.