The South African rand climbed today as gold continue to post new records and on speculation that the central bank will increase the interest rates.
Gold rose 0.6 percent to $1,509, posting the seventh day of gains, as the inflation pressure and worsening confidence in the paper currencies attract investors to the precious metal. The FTSE/JSE Africa Gold Mining Index of five gold mining companies advanced 9.4 percent in March. The South African Reserve Bank may raise its interest rates to battle inflation that reached 4.1 percent last month.
USD/ZAR dropped from 6.7630 to 6.6080 today as of 16:43 GMT.
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