1237 GMT [Dow Jones]--In case of renewed USD strength, the most likely underperformer will be the South African rand, says Morgan Stanley, likely to rise again above 11 by the end of the year. "In contrast to the progress made in other parts of EM, South Africa's trade balance is still deteriorating, with exports still contracting. Policy rates remain too low to provide adequate protection for the currency too should an external shock materialise," says the Morgan Stanley EM strategy team. USD/ZAR is currently at 10.495. (chiara.albanese@wsj.com)
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(END) Dow Jones Newswires
May 02, 2014 08:37 ET (12:37 GMT)
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