Friday, July 13, 2007

Rand Advances for Third Week as Interest-Rate Outlook Spurs Carry Trades

(Bloomberg) -- South Africa's rand rose against the
dollar for a third week as expectations of higher interest rates
in Africa's biggest economy spurred investor appetite for so-
called carry trades.

The rand climbed to its highest in almost two weeks,
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. A report on July 12 showing quicker-than-
expected manufacturing growth added to speculation the Reserve
Bank will raise borrowing costs further.


Read more at Bloomberg Currencies News

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