(Bloomberg) -- South Africa's rand gained versus the
dollar on speculation the central bank will keep raising interest
rates, improving the appeal of the country's assets.
The rand was the third best performer today as the spread,
or yield gap, between 10-year South African bonds and equivalent
U.S. Treasuries rose to near the highest in six months. This and
the Reserve Bank's 9.5 percent main lending rate makes local
assets attractive for so-called carry trade investors who fund
their purchases by borrowing other currencies more cheaply.
Read more at Bloomberg Currencies News
dollar on speculation the central bank will keep raising interest
rates, improving the appeal of the country's assets.
The rand was the third best performer today as the spread,
or yield gap, between 10-year South African bonds and equivalent
U.S. Treasuries rose to near the highest in six months. This and
the Reserve Bank's 9.5 percent main lending rate makes local
assets attractive for so-called carry trade investors who fund
their purchases by borrowing other currencies more cheaply.
Read more at Bloomberg Currencies News
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