Friday, 20 July 2007

Rand Heads for Fourth Weekly Advance on Expectations Rate Gap Will Widen

(Bloomberg) -- South Africa's rand headed for a
fourth weekly gain, its best performance in almost a year versus
the dollar, on expectations the interest-rate gap with the U.S.
will widen.

The rand touched its highest in 11 months yesterday, buoyed
by expectations the Reserve Bank will keep raising borrowing
costs and on speculation the U.K.'s Standard Chartered Plc is in
talks to buy South Africa's Nedbank Group Ltd. The dollar held
near a record low against the euro on views slowing economic
growth will prevent the Federal Reserve from raising U.S. rates.


Read more at Bloomberg Currencies News

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