Deutsche Bank strategists issued a note on Monday recommending investors take long positions in the Swedish krona, South African rand, Chilean peso and Indian rupee, either against the US dollar or the euro.
The recommendation is predicated on an anticipated rally in these currencies as oil shipments resume through the Strait of Hormuz; the note states that the more super‑tankers that can start moving fully loaded, the stronger the expected currency gains.
The strategists maintain a neutral view on EUR/USD and suggest a funding mix of both currencies for the long trades.
Regarding Sweden, the note highlights that the Swedish economy is outperforming regional peers and that this strength is not yet priced into the krona; the krona rose more than 1 % against the dollar on Monday, making it the best‑performing G10 currency.
For South Africa, a potential rebound in gold prices together with an improving domestic environment is expected to support the rand.
The Chilean peso is described as one of the biggest underperformers relative to its aggregate terms of trade; the strategists note that with oil prices receding and copper remaining elevated, Chile’s balance of payments should improve materially.
The Indian rupee is listed as a top pick following a US‑Iran peace agreement; the note expects Reserve Bank of India policy to underpin near‑term capital inflows and longer‑term structural demand, although the market is currently short the rupee and it remains oil‑price sensitive.
Market snapshot at the time of publication shows the Indian rupee up 0.74 % versus the US dollar and 0.12 % versus the euro; the Swedish krona up 0.38 % versus the euro and 0.71 % versus the dollar; the South African rand up 0.58 % versus the dollar; the Chilean peso up 0.92 % versus the dollar; the euro up 0.28 % versus the dollar; gold spot up 2.47 % versus the dollar; Brent crude down 4.77 % and other commodity moves.
The article was generated with AI assistance and reviewed by an editor.