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JOHANNESBURG (AP) -- South Africa's currency is trading at an almost three-year high against the U.S. dollar, raising concerns about how strong is too strong.

 

That puts it in a similar category as several other countries, such as Japan, that are wrestling with a soaring currency. But South Africa finds itself in a unique position: While the government is under pressure to rein in the strengthening currency because it is hampering exports and perpetuating unemployment, the strong currency is also pushing economic growth in one of Africa's biggest economies.

 

South Africa's peculiar situation comes as currency issues move to the forefront of global debates about the balance of trade, with some observers raising the prospect of "currency wars."

 

For South Africa, the debate seesaws between those who seek action to tame the rand and those who see the strong currency as a blessing.

 

So far South Africa's all-important gold companies are weathering the currency surge thanks to inflated commodity prices. And the rand isn't showing signs of slowing -- a healthy sign for South Africa, said Christopher Hart, the chief economist of Investment Solutions.

 

"In the last 10 years, when the rand has strengthened, we've experienced higher economic growth and lower inflation," said Hart, adding that a stronger currency also helps to attract skills.