MAD Moves

Recent dollar weakness against the euro has pushed the Moroccan dirham through our year-end target of MAD8.0/US$, while the dollar component in the unit's trade-weighted basket peg has weakened it mildly against the euro. The support level of MAD11.2/EUR has given way, and the dirham is currently trading around MAD11.23/EUR. In the near term, we think the dollar is a little oversold, and could stage a minor comeback in the coming weeks, meaning the dirham should reverse some of its gains against the dollar. We envisage a move to MAD8.02/US$ in the short-term. Against the euro, dollar strengthening will likely

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