Sanward Securities' Mr. Chen expressed the view that the South African rand-yen will remain firm this week on the outlook for policy rate hikes. The South African Reserve Bank cut its policy rate to 6.75 percent last November, then began raising it in May this year, with the rate now at 7.0 percent. On the other hand, he noted that the radicalization of anti-immigrant protests in Johannesburg is a negative factor, and if they escalate into riots, there is a possibility of a sharp drop in the rand. He forecasts this week's range at 9.75 to 10.25 yen.
SARB rate hikes support rand, but anti-immigrant protests are a negative factor