South African Rand Advances on Metallic Commodities

This year started with a growing demand for metallic commodities as investors expect that the global economic recovery will rise industries’ needs for raw materials, helping the South African currency to start the year bullish.

The rand managed to hit a one-month high versus the U.S. together backed mostly by an increase in the gold rates, in a risk fueled session were emerging markets and commodity producer currencies outperformed other options in foreign-exchange markets.

USD/ZAR traded at 7.3618 from a previous close at 7.3825 in the last trading session of 2009.

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