Despite a steep interest rate cycle in the US, the current rally seems to be defying gravity and monetary policy tightening. The market's response has been counterintuitive. Meryl Pick raises an essential point about this rally, which might be driven by anticipation of an economic recovery and potential rate cuts from the Fed to stimulate growth. However, there's good news for emerging market currencies, including the SA rand. The sentiment suggests that the worst may be over for the US rate hiking cycle, making the dollar less attractive. As a result, currencies like the rand are benefiting and gaining strength.

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