The rand could gain significant ground in the coming months, with interest rate cuts in the United States expected to push investors toward emerging markets like South Africa.
This outlook was highlighted in analysis carried by the Daily Investor , where Old Mutual chief economist Johann Els explained that while the US Federal Reserve is gearing up to trim rates, the South African Reserve Bank is unlikely to follow suit.
In Els' view, the local bank's Monetary Policy Committee is effectively targeting inflation closer to 3, making a rate cut improbable despite sluggish domestic growth.