Rand sees more gains

The South African rand gained against all major currencies Tuesday as new data showed that the economy grew more in the last quarter of 2007 against predictions that it would slow.

The new data raised the possibility that interest rates in South Africa could go up this year.

The rand traded at R7.5545 to the US dollar at midday in New York, while it was at R11.249 to the euro, at R14.899 to the pound and bought ¥14.295.

The US dollar declined versus the euro on Tuesday on separate reports showing that home prices and consumer confidence are down and that producer prices grew by 1 percent in January.

At around noon in New York, the dollar was trading at $1.4892 to the euro, while it was at $1.9762 to the pound and it cost ¥107.6800 to buy a dollar.

The euro was also higher against the yen, trading at ¥160.3517, as German business confidence grew, making it less likely that the European Central Bank will cut interest rates anytime soon.

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