The South African rand climbed upon the news of debt-struck Greece nearing a debt-swap pact and news showing German industrial output in January trumped economists' projections. Germany hosts the euro zone's largest economy and typically fulfills a lead role for financial and economic topics in the bloc.
"Market fears have receded slightly," states an email penned by currency strategists John Cairns and Josina Solomons with Rand Merchant Bank in Johannesburg, according to Bloomberg. "The better environment is reflected in the rand. Our overall sense is that the latest market sell-off has run its course."
Greece, now working with its second tranche of bailout aid since June 2010, is likely to see more banks join the debt swap, according to Reuters.
Private sector job data in the U.S. also pushed up the value of the rand, which is likely to be influenced by decisions about interest rates with central banks in Canada and England, as well as the European Central Bank, Reuters reports.
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