South African Rand Down as Greenback Appeal Rises

The South African rand continued a decline that set it to the lowest rate in almost two months as a greenback rebound is decreasing attractiveness for high-yielding emergent market currencies.

The dollar’s losing trend that was predominant during most of this year’s quarters favored traders chasing high-yieding options in emergent markets often funded by low borrowing costs in the U.S., providing conditions for the so called carry-traders to become extremely popular among investors.

Currently, as the dollar grows and interest rate talks emerge, currencies like the rand are losing appeal, and today’s movement following a downtrend predominant during the last weeks are likely to continue as investors shift their portfolio priorities.

USD/ZAR traded at 7.6605 as of 17:20 from an opening rate of 7.5643.

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