Rand, the world’s best currency?

Stumbled upon this through The Big Picture blog.

From Bloomberg:

South Africa’s rand, the world’s best-performing major currency this year, may rally another 4 percent if it breaks through 8.23 per dollar and stays there, based on technical analysis by Barclays Plc-owned Absa Capital.

If the rand can maintain gains at levels stronger than 8.23 per dollar, it may rally to 8, the currency’s “next major pivot level,” Padayachee said.

Googling on “world’s best currency”, another result appeared but this time giving the title to the Norwegian kroner.

Through an article from CNBC:

Norway has a budget surplus, foreign assets, a petroleum fund and automatic stabilizers and “you couldn’t dream up something better in this environment,” David Bloom, global head of foreign exchange at HSBC, told CNBC [in March].

If one basis is budget surplus, then the rand/South Africa should be failing because of it has a deficit and as far as I know no existing petroleum/sovereign wealth fund as Norway.


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