The South African rand rose today, erasing previous decline and touching the highest level in more than a week, on speculations that the recent losses of the currency, which was the worst performer among the currencies of emerging economies, were excessive.
Three credit-rating downgrades and persistent labor unrest drove away investors from South Africa and reduced the appeal of the nation’s assets. This resulted in the 3.7 percent loss for the rand this year. Yet specialists thought that the losses were overdone, especially considering that tomorrow’s GDP report is expected to show accelerating growth of South Africa’s economy.
USD/ZAR fell from 8.8662 to 8.8278 as of 16:37 GMT today.
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