Growth in the largest economy on the African continent is driving higher and the reserve Bank of South Africa is under less pressure to raise interest rates. Gross domestic product increased 1.9 percent last year, representing a reduction from the year prior, which checked in at 2.5 percent. The 2013 expansion was the slowest since 2009.
"The few cents that the rand gained recently doesn't make a dent in the slide since a year ago," senior economist Christie Viljoen with NKC Independent Economists in Paarl, South Africa told Bloomberg on Tuesday. "The influence of the rand on inflation isn't really going to make a difference. The currency is hopelessly too weak."
At Tuesday's close, the rand had risen 3.7 percent against the greenback, distinguishing itself as the third-strongest performing currency of 16 that Bloomberg tracks.
The rand pushed to its top level in roughly five weeks against the U.S. dollar earlier this week yet encountered challenges presented by political volatility in Ukraine and Turkey, according to The Business Recorder.
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