The South African rand had a third consecutive day of positive performances as the global economic conditions are evidently improving, adding attractiveness to emergent market currencies.
The rand is one of the most volatile and influenced by the international world economic scenario among the most traded currencies, and a numbers of factors is helping the South African to climb since this April. Being one of the most liquid currencies available for trading, the South African rand is currently highly attractive, since interest rates in developed nations are rather low, and the economic recovery as its being perceived by traders decreased risk aversion in financial markets, adding to the already interesting profile of the rand. The current spiking oil price and this weeks U.S. reports added confidence to purchase currencies like the Brazilian Real and the South African rand, thanks to their
Analysts refer to the South African rand as a currency which is highly subjected to the international situation of the world economy. The richest African nation is a commodity exporter, without a high political influence internationally, being the domestic countrys conditions not so influential as the conditions in the United States for example. It is likely that the South African rand will remain strong as long as the investors continue their confident bullish pattern of asset purchasing.
USD/ZAR traded at 7.9808 as of 4:10 p.m. GMT this Thursday rising from a previous price of 8.1085. The rand already gained 19 percent against the dollar since the beggining of the year.
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