UBS Forecasts Weakening USD/ZAR as Risk Appetite Rises

Global trade optimism is driving a shift in currency markets, with UBS predicting a weakening US Dollar (USD) against the South African Rand (ZAR). This prediction stems from increased global investor risk appetite and positive developments in international trade negotiations. The ZAR’s strength is attributed to its ability to accommodate higher-yielding investments as investors seek out riskier assets, particularly those associated with emerging markets.