South Africa’s rand may strengthen should the country win the opening game of the soccer World Cup against Mexico tomorrow, according to RBC Capital.
“If South Africa win tomorrow we could well see the rand a little bit stronger as the euphoria of it all boosts sentiment,” Nigel Rendell, an emerging-market strategist at RBC Capital in London, said by telephone. “There could well be a correlation between South African goals scored and the fortunes of the rand.”
South Africa, rated 83rd by FIFA, is the worst-ranked team at this year’s world cup after North Korea at 105th, and is picked by bookmakers to be the first host nation not to advance to the knockout round. Still, the country is on a 12-match unbeaten run, and will be buoyed by home support when it faces 17th-ranked Mexico at the almost 90,000-seat Soccer City in Johannesburg tomorrow.
The rand traded less than 0.1 percent weaker at 7.7542 by 2:03 p.m. in local time, from a close of 7.7494 late yesterday. Against the euro the rand lost 0.1 percent to 9.3315.
“Traders will be glued to their screens and might well be putting on trades on the back of goals,” Rendell said.