Interest Rates Outlook Keeps Rand Down
The South African rand moved lower versus the US dollar for a third day today on outlook that the nation’s central bank will keep the interest rates unchanged.
The Monetary Policy Committee of the South African Reserve Bank will meet tomorrow to discuss the interest rates. Analysts expect that the policy makers will hold the target rate unchanged at 5.5 percent. The expected dovish statement of the central bank can hurt appeal of the rand for investors interested in carry trade.
USD/ZAR traded today at 6.7450 as of 11:40 GMT after earlier it rose from 6.7160 to 6.7780.
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Earlier News About the South African Rand:
- Gold Jumps Above $1,500, Helping South Africa's Rand (2011-04-21)
- Rand Jumps on Expectation of Higher Interest Rates (2011-04-20)
- Rand Strengthens as Gold Reaches Record (2011-04-08)
- South African Rand Rises for Third Day vs. Dollar (2011-03-31)
- Rand Falls on Risk Aversion Following Earthquake in Japan (2011-03-15)