South African Rand rises as construction workers resume work
South African Rand rises as construction workers resume work
07-15-2009 11:34
The high-yielding South African Rand showed various weeks of decreases as a result of currency and stock markets facing a new flow of risk aversion. South African construction workers have agreed to end a weeklong strike, on which the Rand climbed today, which increased confidence in the nation on the back of returning stability.New flow of risk aversion
A new flow of risk aversion affected markets last week and struck the South African currency massively. The Rand posted the weakest results of all the most frequently traded currencies on the back of rising concerns regarding the worldwide recession. Traders could start investing in the South African Rand as the world cup constructions workers ended the strike and with the return of risk appetite on the markets this week it could create the ideal situation for the Rand to rise after reaching the lowest level in seven weeks versus the US Dollar.Industrial production report
Today a US industrial production survey will determine the Rand´s prospect and it will surely dictate the intensity of risk aversion on the markets this week. The South African currency could continue its rally versus low-profit currencies such as the Japanese Yen if the report turns out positive, if not, the Rand could post month-to-month record low levels.
