The South African rand advanced today after five days of losses on speculations that the drop was overdone and after yield on nation’s debt fell.
The yield on the benchmark 10.5 percent bonds maturing in December 2026 fell 8 basis points to 7.09 percent, the lowest close since December 2008. The currency also rallied on the positive market sentiment caused by the last week’s policy statement of the European Central Bank. Previously, the currency was falling on labor unrest and as Fitch Ratings had cut the country’s credit rating by one notch to BBB.
USD/ZAR declined from 8.7191 to 8.7022 as of 13:12 GMT today.
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