The South African rand extended gains from last week as concerns regarding Dubai’s debt declined today, providing support for risk fueled traders to purchase assets in emergent markets and commodity linked countries like South Africa.
After the Abu Dhabi financial authority bailed out Dubai with $10 billion, concerns that a major debt disaster involving European banks cooled down today, allowing risk appetite to grow and forcing the greenback down versus the South African rand.
USD/ZAR declined and closed at 7.5150 today from an opening rate of 7.5438.
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