Rand Gains for Second Day on European Bonds & US Corporate Profits

The South African rand gained today for the second day after yields on European bonds fell, easing nervousness about Europe’s troubles, and as US corporate profits were above forecasts.

Falling yields for Spanish, Italian and Dutch bonds gave investors hope that Europe may yet emerge from its financial crisis. Apple reported that it almost doubled its profit in the second fiscal quarter as demand for iPhone grew in China. All in all, market sentiment was good today and that allowed riskier currency of South Africa to advance.

USD/ZAR fell from 7.7910 to 7.7590 as of 8:49 GMT today, while the daily low of 7.7480 was the lowest since April 4.

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