South African Rand Rises for Third Day vs. Dollar
The South African rand gained today, rising for the third straight day against the US dollar, as commodities rallied and market participants expect an increase of the interest rates.
Gold and platinum, which makes up fifth of South Africa’s export revenue, advanced for a second day. Central bank Governor Gill Marcus said that the bank won’t be “soft” on the inflation, making investors to bet that the interest rates will be raised this year. Higher interest rates will make the rand more attractive for speculators interested in carry trades.
USD/ZAR trade near 6.771 as of 15:36 GMT today after the previous drop from 6.814 to 6.748.
If you have any questions, comments or opinions regarding the South African Rand, feel free to post them using the commentary form below.
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Earlier News About the South African Rand:
- Rand Falls on Risk Aversion Following Earthquake in Japan (2011-03-15)
- Rand Goes Up as Gold Rallies (2011-03-02)
- Rand Strengthens as Government Won't Intervene (2011-02-24)
- Third Day of Losses for Rand Due Egyptian Crisis (2011-02-11)
- South African Rand Drops on Civil Unrest in Egypt (2011-02-04)
6 Comments
Do you think the Rand is going to become weaker again or is it going to remain like this?
It’s already quite low in a long-term perspective.
Sorry im not very clued up with this. Do you think the us dollar is going to rise again agianst the rand, or do you think the rand is going to become stronger against the us dollar?
Sorry, I wanted to say that the US dollar is going to fall against the rand in long-term, but may rise against it in short-term.
Thank you now I think I understand. Basicly the dollar is only going to loos more value against the rand and is basicly going to be useless.
I’d say it’s rand that is going to be strong, not that the dollar is going to be too weak.