South Africa’s rand rose for a second week against the dollar on speculation the African National Congress will maintain current economic policies after winning this week’s elections.
Currency traders and analysts are showing no faith in the rebound that has made the Russian ruble the world’s best-performing currency this month.
South Africa’s rand posted its biggest weekly gain in two months on signs the global recession may be easing and bets a merger of MTN Group Ltd. with India’s largest mobile-phone company will pump money into the economy.
South African bonds advanced after a report showed inflation eased to the slowest rate in almost two years, adding to speculation the central bank may lower its benchmark interest rate.
HSBC Holdings Plc is squaring off against Nomura Holdings Inc. in predicting the future course for South Africa’s rand, the world’s worst-performing major currency in the past year.
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 situation in the oil market is very fluid and we have yet to see the full impact of the recent central bank and government measures on the ruble."
- Murat Toprak on Jan 11, 2015