The rand strengthened for a second day as higher metal prices boosted the outlook for South African producers and as investors bought currencies in countries with high interest rates relative to developed nations.
The rand declined the most in more than a month against the dollar as investors sold riskier assets after the U.S. Federal Reserve cut estimates for U.S. growth and on concern Greece won’t avoid a debt default.
The rand gained for a second day as an illegal strike at a South African platinum company ended and the dollar weakened against major peers before Federal Reserve Chairman Ben S. Bernanke speaks tomorrow. Bonds advanced.
The rand weakened the most in three months versus the dollar as technical analysis used by traders signaled the currency was overbought following its 35 percent surge against the dollar since the start of last year.
The rand weakened for the first time in four trading sessions as importers bought foreign currency at cheaper levels following the rand’s surge to its strongest level against the dollar in more than 2 1/2 years.
The rand weakened, trading above 9 per dollar for the first time in three years after debt-cutting efforts for Greece stumbled, damping demand for risky assets, and as South Africa inflation unexpectedly quickened.