Will rand strength last?

We have a love hate relationship with the rand. It represents our hopes and fears as it rises and falls, so too does the national mood it seems. It is our collective share price on SA Inc. Born on February 14, 1961, the rand has gone from global pariah to emerging-market proxy. The rand has emerged as an unlikely winner among emerging market currencies since the Covid-19 pandemic swept the globe, despite SA's high levels of debt and unemployment. SA offers some of the highest real yields in major emerging markets, with 10-year government bonds yielding just more than 9% with inflation at 3.2% year-on-year. But they don’t call the rand the rattler in FX markets for nothing as it can quickly turn around and bite you. So what’s behind the rand strength and where to from here for our beloved rattler? Michael Avery speaks to Brian Kantor, head of the research institute at Investec Wealth & Investment; Nolan Wapenaar, co-chief investment officer at Anchor Capital; & Varushka Singh, Fixed Income and Currency Strategist at RMB