Deutsche Bank Defies Rand Bears as South Africa Turns Corner
- Lender sees currency extending gains in 2017 as growth revives
- Relatively high real rates shield rand against Fed tightening
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After posting one of the strongest rallies in emerging markets this year, South Africa’s rand is headed for a 12 percent drop in 2017, according to analysts polled by Bloomberg. Deutsche Bank AG says they’ve got it wrong.
The fourth-biggest foreign-exchange trader is shrugging off political uncertainty that’s slowed the currency’s advance in 2016, predicting a gain of about 7 percent to 12.50 per dollar next year. Here’s why: