South African investors turn to Australian dollar in search for yields
South African investors, who have experienced significant losses compared to hard currency exposures, are turning to the Australian dollar in search of better yields.
Foreign exchange volatility in South Africa has led investors to seek exposure to alternative, more stable currencies with high interest rates in offshore markets, according to structured products distributor Morgan West Group.
“If you are scared of equity markets, where are you going put your money?” says Thomas Breslin, chief executive at Morgan West Group in Johannesburg. “The Australian dollar is a semi-hard currency. It has good relative value in its yield curve - well above the dollar and
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