Charts Show Rand Bears Are Running for Cover, With One Proviso
- Analysts upbeat on South Africa’s currency as risks fade
- One gauge shows traders still hedging for worst-case scenario
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The outlook has rarely been better for South Africa’s rand.
With one exception, the charts are pointing in the right direction for the currency to extend gains that have seen it outperform 30 peers in the past 12 months. Risk measures from volatility to credit-default swap prices are falling, analyst forecasts are at their least bearish in 18 months, and bond inflows are rising. But one measure shows traders aren’t quite convinced.