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investors flee south african bonds amid deteriorating us relations
Franklin Resources, JPMorgan, and Wells Fargo have significantly reduced their South African bond holdings amid deteriorating US relations, leading to the largest outflows since before the May elections. Concerns over potential loss of preferential trade status under AGOA and a bleak fiscal outlook have intensified investor anxiety, with foreign sales reaching 16.1 billion rand in March. The rand's recent strength is attributed to foreign investors unwinding currency hedges as bond prices react to these developments.
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