The South African rand extended its rally today for the fifth day as the prices for platinum and gold rose and the central bank kept the benchmark rate unchanged.
The South African Reserve Bank kept the repurchase rate at 6.5 percent. This move wasn’t unexpected, but there were quite a few traders who bet on the rate cut. The high South African rates, compared to the rates in Japan (0.1 percent) and in the U.S. (0.25 percent), should attract to the country the investors interested in the carry trades.
USD/ZAR traded near 7.396 as of 9:56 GMT after it opened at 7.408.
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