The dollar is weakening before a US housing report that may indicate prices have fallen, and European bonds are also up on news that France’s economy expanded less than expected
The rand rose to R6.65 against the dollar by lunchtime on Tuesday and is now at a new three year high against the US currency.
The rand has firmed throughout today, up 1% on Monday’s New York close and is now at its strongest since December 2007.
The dollar is weakening before a US housing report that may indicate prices have fallen, and European bonds are also up on news that France’s economy expanded less than estimated.
Gold has rallied for a third day to $1397.
The market believes U.S. home prices have probably dropped in October, a sign that the recession continues apace - those figures are out later today.
France’s economy grew 0.3% in the third quarter, less than the 0.4% preliminary estimate.
Yields on the French 10-year bond dipped to 3.34%, while the German two-year note yield was down six basis points.
The rand is 10.27 to the British pound, and 8.81 to the euro.
