South African Rand’s Biggest Rally of Year Is Just the Beginning, Nomura Says

  • Bank has most optimistic rand forecast for second quarter 2023
  • Sees S. African rand averaging 17 per dollar in second quarter

   

Photographer: Waldo Swiegers/Bloomberg

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South Africa’s currency is on track for its biggest weekly gain of 2023, following Thursday’s larger-than-expected interest rate hike. For Nomura, this is just the beginning of the rally.

The rand leaped 1.6% Thursday to close stronger than 18 per dollar for the first time since Feb. 14. It is up another 0.3% today, pushing its weekly gains to 2.2%, the most since Dec. 23.