Excerpt from:  Forex Analysis
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April 25, 2008

Forex Trading Strategy: Higher Yielding Assets

South African rand gains in currency trading
The interest rate differential is helping the South African rand, since it is a high yielder.
Forex trading strategy for many right now is centering around higher yielding assets as risk appetite returns on the recovering US economy.

The South African rand, especially, is benefitting from this. The interest rate differential is helping the South African rand, since it is a high yielder. Bloomberg reports on forex trading strategy:

``Expectations of higher interest rates are certainly a short-term positive for the currency,'' said Luis Costa, an emerging-markets debt strategist in London at Commerzbank AG, Germany's second-biggest lender. ``Combined with improved global risk sentiment that's boosting flows into high yielding assets.'
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Topic Tags:  currency trading, forex trading, forex trading strategy, interest rate differential, South African rand, US economy

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