{"id":439953,"date":"2020-10-12T13:24:06","date_gmt":"2020-10-12T11:24:06","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=439953"},"modified":"2020-10-12T13:24:06","modified_gmt":"2020-10-12T11:24:06","slug":"heres-why-analysts-are-backing-the-rand-and-other-currencies-against-the-dollar","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/439953\/heres-why-analysts-are-backing-the-rand-and-other-currencies-against-the-dollar\/","title":{"rendered":"Here’s why analysts are backing the rand and other currencies against the dollar"},"content":{"rendered":"

The dollar may tumble to its lows of 2018 on the rising likelihood of Joe Biden winning the US election and progress on a coronavirus vaccine, according to Goldman Sachs Group Inc.<\/p>\n

“The risks are skewed toward dollar weakness, and we see relatively low odds of the most dollar-positive outcome – a win by Mr. Trump combined with a meaningful vaccine delay,” strategists including Zach Pandl wrote in a note Friday.<\/p>\n

“A \u2018blue wave\u2019 US election and favourable news on the vaccine timeline could return the trade-weighted dollar and DXY index to their 2018 lows.”<\/p>\n

\"\"<\/a><\/p>\n

The ICE US Dollar Index has fallen more than 3% so far this year – trading just over the 93 level on Monday – as investors reacted to unprecedented pandemic-related monetary stimulus from the Federal Reserve and rock-bottom interest rates.<\/p>\n

The gauge traded below 89 in 2018, a level which would imply a further slide of more than 4%.<\/p>\n

Goldman joins the likes of UBS Asset Management and Invesco Ltd in predicting a weaker dollar as Biden extends his lead over president Donald Trump with less than three weeks to election day.<\/p>\n

It recommends investors short the dollar against a volatility-weighted basket consisting of the Mexican peso, South African rand and Indian rupee.<\/p>\n

The strategists also suggest buying the euro, Canadian and Australian dollars against the greenback.<\/p>\n

The firm is keeping open long recommendations for the yuan through unhedged Chinese government bonds.<\/p>\n

\u201cThe wide margin in current polls reduces the risk of a delayed election result, and the prospect for near-term vaccine breakthroughs may provide a backstop for risky assets,\u201d they wrote.<\/p>\n

\n

Read: The most popular job searches in South Africa right now \u2013 and what they pay<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The dollar may tumble to its lows of 2018 on the rising likelihood of Joe Biden winning the US election and progress on a coronavirus vaccine, according to Goldman Sachs Group Inc.<\/p>\n","protected":false},"author":59,"featured_media":431648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-439953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/439953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=439953"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/439953\/revisions"}],"predecessor-version":[{"id":439965,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/439953\/revisions\/439965"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/431648"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=439953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=439953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=439953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}