South African Rand May Gain on Speculation Central Bank Will Raise Rates

(Bloomberg) -- The South African rand may gain before
a central bank meeting later this week where policy makers are
expected to raise interest rates to curb inflation.

Bond investors betting the central bank will lift borrowing
costs on June 7 have pushed the spread, or yield gap, between
South Africa's 10-year securities and equivalent-maturity U.S.
Treasuries to near the widest in two months. This may strengthen
the currency by boosting the allure of rand-denominated assets.


Read more at Bloomberg Currencies News