The South African rand gained today, rising for the third straight day against the US dollar, as commodities rallied and market participants expect an increase of the interest rates.
Gold and platinum, which makes up fifth of South Africaâs export revenue, advanced for a second day. Central bank Governor Gill Marcus said that the bank wonât be “soft” on the inflation, making investors to bet that the interest rates will be raised this year. Higher interest rates will make the rand more attractive for speculators interested in carry trades.
USD/ZAR trade near 6.771 as of 15:36 GMT today after the previous drop from 6.814 to 6.748.
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