The advances of the monetary unit of Africa's largest economy were propelled by a report stating orders of capital goods from the U.S. grew the most in three months. That left South Africa optimistic about bright days ahead for the South African commodities exporting industry.
The rest of this year will see the European Central Bank leave borrowing expenses and costs intact while the U.S. Federal Reserve plans to keep its lending rate low as well.
"A benign interest-rate environment in developed markets for a longer period of time" is likely to "benefit the rand as liquidity will be channeled toward high-yielding economies," states a research note from currency strategists John Cairns and Nema Ramkhelawan-Bhana with Rand Merchant Bank in Johannesburg.
Finance Minister Pravin Gordhan told Reuters that the nation is deciding how to stabilize the rand, while also stating he does not believe it is possible to develop the economy and manage fiscal credibility at the same time.
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