Rand Strengthens as Global Recovery Gains Momentum

The South African rand extended its gains against the U.S. dollar for the fourth consecutive day as the speculation that the global economic recovery is gaining momentum encourages the investors to purchase the higher-yielding assets.

The International Monetary Fund forecast that the global economy would grow by 4.6 percent in 2010, the biggest increase since 2007. The investors bet on the increase of the 6.5 percent benchmark interest rate by the central bank on July 22.

USD/ZAR traded near 7.557 today as of 9:53 GMT after it opened at 7.568.

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