First it was Turkey defending itself tooth and nail against Bernanke's tapering, now it is South Africa, just as we predicted less than an hour ago.
- SOUTH AFRICA RAISES BENCHMARK RATE TO 5.50% FROM 5.00%; EXPECTATION WAS FOR UNCHANGED
- SOUTH AFRICA CENTRAL BANK RAISES BENCHMARK RATE
- RAND STRENGTHENS AS CENTRAL BANK UNEXPECTEDLY RAISES REPO RATE
- S. AFRICA'S MARCUS SAYS MOVE NOT INTENDED TO AFFECT RAND
- S. AFRICA'S MARCUS SAYS HAVE A FLEXIBLE EXCHANGE RATE
Naturally, the ZAR surges... for about 10 milliseconds, after which it promptly drops to a level weaker than pre-announcement!