Further Losses For ZAR/TRY

Our expectation of a slight bounce in gold prices over the immediate-term could help see the current period of rand upside (which we successfully anticipated) play out for a short while longer. Beyond this, though, as we have been highlighting, we see further rand weakness. With relatively high interest rates, and three month depo rates trading around 8.70%, the rand is fairly expensive to short, particularly against the dollar and the euro. As such, a more attractive trade may exist in TRY/ZAR. Indeed, three month depo rates in Turkey currently trade around 18.75%, leaving around 10% carry for the lira

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