South Africa’s rand is feeling the love

• The South African rand is attracting foreign investors at the fastest pace since January, driven by a lucrative emerging-market carry trade.
• The renewed interest in South African bonds comes after yields jumped to six-month highs in March due to inflation concerns sparked by the Iran war, but have since dropped more than 80 basis points.
• The rand's strengthening, coupled with easing concerns of Federal Reserve interest-rate hikes, bolsters the carry trade and supports the currency's medium-term prospects.