Tuesday, November 3, 2009

Usd v Zar

For those interested in currencies.It is time again to go long the South African Rand, and sell the Usd.The best part about this trade, because it should be viewed with a long term perspective, is the interest rate that South Africa is currently set at.If you trade on a margin account, the interest rate provides an even better opportunity through leverage. According to my calculations, the Zar has room yet because accordingly through the 'fisher effect ' the Usd incomparison is still over valued.Take a look for yourself. It is still a rare chance to part take in some arbitrage.

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