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UBP Strategist’s Two Rules: Don’t Buy Rand, and Don’t Buy Rand
South Africa’s rand is cheap for good reason, according to Union Bancaire Privee. The rand’s real effective exchange rate, which measures its inflation-adjusted value relative to the currencies of its main trading partners, has dropped to the lowest level since March 2016, according to a JPMorgan Chase & Co. index. But that doesn’t mean the currency is poised for a rebound, said Peter Kinsella, the London-based global head of forex strategy at UBP. “On my old trading desk, there were two rules,” Kinsella said in a note to clients. “The first rule was that you were not allowed to buy rand. The second rule ... (full story)