After falling further from last year's advance, the South African rand is entering a rebound phase, although the 10-yen level has twice held it back. The article reports on the recovery from low levels and developments surrounding a potential break above 10 yen.
Rand-yen traded in the 7.2-yen range in April last year, but built an upward trend and reached the 9.4-yen range by year-end. It remained near its highs early this year, but funds flowed out as risk aversion intensified against the backdrop of tensions between the United States and Iran, and the rand was sold against the dollar. In July and August, the psychologically significant 10-yen level was seen twice as a factor capping upside, while intervention by Japanese authorities to buy yen also had an impact.
From September onward, the dollar strengthened against the rand and rand-yen fell to around ¥9.4, due to continued tensions in the Middle East and the impact of rising US interest rates. The pair has since shown signs of rebounding.
The Mexican peso also came under notable selling pressure in October, moving in contrast to rand-yen.
Following these developments, attention is focused on the possibility of a break above the 10-yen level, but the article does not present a definitive investment view and only conveys data-based facts.