South African randThe South African rand rose to its highest level in more than two weeks against the US dollar today, as the rate difference attracted speculators, while they shunned uncertainty of the States.
While President Obama continues to press the Congress for the debt ceiling compromise, there’s no end seen to these prolonged debates. Next Tuesday can become one of the worst days in dollar’s history if nothing changes until that. As the global investors have the fact in mind, many of them a reluctant to keep their assets in USD. The recent behavior of the South African rand is showing an elevated interest in this currency.
On the other hand, there’s another attractive advantage in the ZAR for the foreign currency traders — its interest rate (5.5 percent compared to almost zero in the US). Being the Africa’s biggest economy, South Africa is also considered a fiscally and financially stable region, closely tied to the commodity prices (especially gold), which makes it a near-perfect target for short-term currency investments. Five days ago, the South African Reserve Bank has left the rates unchanged, signaling that the period of high rates may continue further.
USD/ZAR fell from 6.7619 to 6.6744 as of 14:53 GMT today, reaching as low as 6.6658 intraday — the maximum level since July 8th.
If you have any questions, comments or opinions regarding the South African Rand, feel free to post them using the commentary form below.
Earlier News About the South African Rand:
Rand Weakened by Credit Rating Outlook for Greece (2011-07-05)
Rand Weakens with Commodities on US Growth Forecast (2011-06-23)
South African Rand Falls on Greek Crisis, Trims Losses (2011-06-20)
South African Rand Climbs vs. Dollar on Greece's Bailout (2011-06-02)
Rand Advances vs. Dollar on Economic Growth (2011-05-27)
This entry was posted on TopForexNews on Tuesday, July 26th, 2011 at 2:56 pm and is filed under South African Rand. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
