Gold is 2025’s best performer. UBS sees more upside
Investing.com -- The South African rand is expected to gain the most among emerging market currencies as the U.S. dollar weakens, according to BofA.
The rand, which typically shows a strong reaction to dollar movements, stands as the most undervalued currency in emerging Europe, Middle East, and Africa (EEMEA), positioning it for potential appreciation.
The Polish zloty and Czech koruna are also projected to strengthen against both the euro and dollar, though their current overvaluation makes them less attractive options compared to the rand.
The Hungarian forint was excluded from the favorable outlook due to upcoming elections that could lead to looser monetary and fiscal policies this autumn. Similarly, the Israeli shekel was noted to be more influenced by geopolitical risks and US equity markets than broad dollar movements.
For Kazakhstan, August 25th represents a strategic entry point for shorting USD/KZT, with approximately $800 million in tax payments expected to trigger corporate foreign exchange sales. The Kazakh tenge appears significantly undervalued with a monthly carry of nearly 1%.
The analysis also highlighted that Kazakhstan’s central bank has signaled unwillingness to allow USD/KZT to trade above 550, creating what analysts describe as an asymmetric trading opportunity.
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