Rand Bulls Snub Risks as ING Sees South African Currency Rising
- Carry, economic strengths back buyers amid short-term threats
- USD/ZAR may drop to 13.00 by year-end, Rand Merchant Bank says
A South African one rand coin and banknotes sit in this arranged photograph in Pretoria, South Africa, on Monday, Dec. 14, 2015. South Africa's government was left trying to shore up credibility after President Jacob Zuma's debacle over who should run the finance ministry called into question his ability to oversee the economy.
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Don’t count the rand out yet.
Analysts at Rand Merchant Bank and ING Groep NV predict the South African currency, the second-worst emerging-market performer in the past month, will rebound against the dollar by year-end as the pull of improving fundamentals and the hunt for yield support buyers amid lingering political and fiscal risks.