Wednesday, July 25, 2007

South African Rand Gains After Country's Credit Outlook Revised Higher

(Bloomberg) -- South Africa's rand rose against the
dollar after Fitch Ratings revised the country's credit outlook
to ``positive'' from ``stable.''

The rand also gained today as the spread, or yield gap,
between 10-year South African bonds and equivalent U.S.
Treasuries rose to near the highest in six months. The Reserve
Bank's 9.5 percent main lending rate makes local assets
attractive for investors who fund their purchases by borrowing
more cheaply in other currencies.


Read more at Bloomberg Currencies News

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