| South Africa’s rand is currently testing the 7.30/$ mark after the euro remained above 1.50 a dollar and gold is at fresh all time highs trading at $1215 this morning. All these factors and the soccer world cup only six months away with massive inflows expected due to the world’s biggest sporting event will continue to support the rand. We should see importer demand below 7.30/$ however the bullish sentiment will prevail for now.
The International Monetary Fund and finance ministers from the 16 countries using the euro believe the single currency is overvalued, the ministers’ chairman said on Tuesday. The head of the IMF’s European department, Marek Belka, presented a regular report on the euro zone economy to the currency area’s finance ministers and European Central Bank President Jean-Claude Trichet. “We agreed with him when he said that the euro was overvalued and that some adjustment in that area would be desirable,” the Euro group’s chairman, Jean-Claude Juncker, told a news conference. |
Dec.02.2009 
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