Rand Is Undervalued Even After Year-Long Rally, Survey Shows

South Africa’s rand is undervalued at current levels, according to a survey of investors and economists, who see scope for further currency appreciation as the government’s reform program boosts economic growth.

On average, a Bloomberg survey of 14 respondents saw an exchange rate of 15.64 per dollar as fair value for the rand, with half of them seeing the currency as undervalued and three seeing it as close to fair value. Four said it was overvalued. Fair-value estimates ranged between 12.23 to 18 per dollar.