Market news
18.05.2022, 07:35

USD/ZAR: Target range raised to 15.50-16.50 – Credit Suisse

Economists at Credit Suisse raise their USD/ZAR target range to 15.50-16.50 (from 14.50-15.50 previously). What’s more, they refrain from setting the new target much above recent highs after a large rally and given that USD/ZAR no longer looks dislocated versus the broader EM FX complex.

Raise USD/ZAR target range to 15.50-16.50

“We lift our USD/ZAR target to 15.50-16.50 from 14.50-15.50 previously. Our previous target range looks too low in an environment where the USD overall remains bid.”

“We suspect that some of the latest rand-weakness and underperformance against other highyielders (namely MXN) could have been a result of re-balancing of local portfolios following a multi-month period of outperformance of local assets. These flows, to the extent that they continue, will probably prevent a major and sustained drop in USD/ZAR.” 

“We deliberately refrain from setting the upper-end of our new range much above recent highs (of 16.32) because (1) the latest bottom-to-top rally in USD/ZAR (~10% since mid-April) is now only slightly short of the magnitude of two other similar episodes that unfolded in the last 12-month period and; (2) USD/ZAR does not look dislocated relative to the broader EM/FX complex like it did a few weeks ago.”


© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location