SA rand shines
JOHANNESBURG. — South Africa’s rand raced to its highest in over a week yesterday, erasing all of the losses suffered after the economy slipped into recession, as a rate hike in Turkey and Moody’s decision to hold fire on a downgrade boosted demand.
At 1215 GMT, the rand was 1,4 percent firmer at 14 7700 per dollar, just shy of its session-best 14 7000 touched immediately after Turkey’s central bank raised its benchmark rate by 625 basis points.
The Turkish lira firmed 6 percent following the decision.
Before that, the rand had been rising as easing tensions between the United States and China fuelled risk demand in early, low liquidity trade.
Moody’s comment at a conference in Johannesburg that it was unlikely to cut Pretoria’s foreign debt to sub-investment, despite last week’s surprise slide into recession, pushed the rand’s gains to more than 1 percent. — Reuters.