Rand Gains, Firming Rank as Best of Emerging Markets in 2009

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By Garth Theunissen

South Africa’s rand posted its steepest monthly gain since September 1986 as investors bet rate cuts may help the continent’s largest economy avoid the worst of the global recession.

The rand rallied to a seven-month high, making it this year’s best-performing emerging-market currency, after policy makers led by Governor Tito Mboweni reduced the main interest rate to 8.5 percent today, the lowest since December 2006, to boost the economy. The cut was in line with forecasts by 19 of 20 economists surveyed by Bloomberg. A separate report showed producer inflation rose at the slowest pace in almost three years, leaving more scope to lower rates.

Rand Gains, Firming Rank as Best of Emerging Markets in 2009 - Bloomberg.com

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