South Africa's rand will rebound against the dollar in the coming twelve months as the US Federal Reserve and the European Central Bank take policy steps to revive their respective economies, lifting appetite for riskier assets.
Median forecasts from 30 analysts and strategists polled recently see the rand firming to 8.30 against the greenback in a month, 8.03 in six months and to 8.00 in twelve months, around five percent higher.
The range of forecasts between each of the participants are wide this month, with the most bullish scenario seeing the currency at 7.102 and the most bearish of analysts projecting the currency to weaken to 9.2 versus the dollar in twelve months.
"What we expect is that the dollar is going to weaken in the medium term, the second point on the ECB front is that we are also constructive with the euro itself," said Murat Toprak, strategist at HSBC.
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