BNP Paribas expects rand to reach R14.25/$ by year end

The rand’s recent weakness in the face of an international energy crunch and prospects for tighter policy globally has not been enough to deter BNP Paribas’ short-term bullish bet on the currency, though the French bank expects the factors driving that strength to wane into 2022.

SA’s currency will probably strengthen as much as 4% from last week’s level to about R14.25/$ by year end, supported by the country’s healthy current account, Jeff Schultz, senior economist at the French bank’s local branch, wrote in a research note late last week…