Posted On: February 01, 2012
The value of the monetary unit of the African continent's largest economy drove to 90-day high on Wednesday against the world's reserve currency,
according to Bloomberg.
The South African rand climbed on the
foreign exchange market in response to a gauge of manufacturing in the nation exceeding estimates and forecasts issued by analysts.The monetary unit also climbed as a result of strong debt auctions in Germany and Portugal, which did their part to drive confidence higher. But it was the purchasing managers' index that rose to a seven-month peak, which really drove the rand higher in value.
"We view the expansion in the PMI as rand-positive," states an email penned by analyst Tebogo Mosepele with Standard Bank Group, according to Bloomberg. "The data may encourage rand bulls as it bodes well for South Africa's growth prospects."
In December, the index registered 49.4. In January, it rose to 53.2. The median estimate of four economists polled by Bloomberg indicated that the index would be at 50.2.
Following an auction of 10-year bunds on Wednesday, borrowing expenses stayed at record lows,
according to The Wall Street Journal.
Category: Industry News
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