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The Strong Rand
As the earnings in the US and other first world countries are again rising, investors are motivated to invest in riskier options. South Africa, being a quite risky investment area, has benefited from increased foreign direct and portfolio investment in the last couple of months. This has helped the Rand to become stronger. This is but one influence in explaining the strong Rand though. The Soccer World Cup and many other factors also comes into play. It should also be noted that the strength of the Rand has now only returned too levels seen before the global financial crisis.
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