Key facts
- South Africa's rand has recovered its position in carry-trade performance.
- The rand was previously near the bottom of the carry-trade table.
- The shift occurred in the weeks following the outbreak of the Iran war.
- A surge in bond inflows has contributed to the rand's recovery.
The South African rand has experienced a significant turnaround in its performance within the carry-trade market. After weeks of languishing near the bottom of the performance table, particularly in the period following the outbreak of the Iran war, the rand has now swung back to being a top performer. This recovery is attributed to a surge in inflows into South African bonds, indicating renewed investor confidence or a shift in market dynamics favoring emerging market debt.