South Africa Intervenes to Weaken Overvalued Rand

The South African rand fell today as the central bank bought the foreign currencies in order to battle the excessive appreciation, which may hurt the exports.
The rand jumped 38 percent since the beginning of 2009 as the interest rates in the developed nations were falling, while in South Africa the rates remained high, attracting the investors. The government voiced concerns about the impact of the overvalued currency on the nation’s economy and tried to curb the gains, increasing the net gold and currency reserves rose from $40.9 billion in September to $43.1 billion in October.
USD/ZAR rose from 6.784 to 6.837 as of 11:42 GMT today, following the advance to 6.848.

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