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Morgan Stanley

2026 FX Outlook: The Year of Pivots

LIVE20 November 2025USD bearish
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USD/ZAR

ZAR to benefit from commodity tailwinds, GNU political stability, and improving

Bullish

MS Forecast Path

Cross-Firm Forecast Comparison

Key Drivers

Commodity prices
GNU stability
SARB easing
Fiscal improvement
Load shedding resolution

All Firm Targets (Dec '26)

JPMBullish16.25
INGBullish16.25
BARCBullish16.10
GSBullish16.00
MUFGBullish16.00
BofABullish15.80
MSBullish15.75
DBStrongly Bullish15.50

Analysis Summary

ZAR to benefit from commodity tailwinds, GNU political stability, and improving fiscal trajectory. SARB easing cycle supports growth without undermining the rand. USD/ZAR to decline to 15.75.