Monday, July 16, 2007

Rand Holds Near 2-Week High; Gains Already Reflect Interest-Rate Outlook

(Bloomberg) -- South Africa's rand traded little
changed, holding near a two-week high against the dollar, on
speculation that recent gains already reflect the outlook for
higher interest rates.

The rand earlier touched its highest since July 3, supported
by investors seeking out South Africa's 9.5 percent interest rate
in trades funded by borrowing Japanese yen or Swiss francs more
cheaply. The Reserve Bank has increased borrowing costs five
times in the past year and is expected to continue doing so to
curb inflation.


Read more at Bloomberg Currencies News

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