Rand Firmer As Dollar Rally Pauses

Credit: Supplied.

The rand was firmer early on Friday ahead of trade and budget data, advancing for a second consecutive session as a pause in the dollar’s recent rally and fresh demand for local bonds supported the currency.

At 0700 GMT the rand was 0.67% firmer at 13.6800 per dollar compared to a close of 13.7725 overnight in New York.

A heavy global selloff of emerging market assets in recent sessions eased on Thursday and continued on Friday as the greenback tapered off, mainly on a climbing euro boosted by EU leaders reached an agreement on migration.

“Initially the rand went sharply higher as the euro lost some ground and 14.00 was paid once, but we saw some good local exporter interest up at those levels and as the euro traded higher the rand was soon back below 13.90,” said analysts at Nedbank in a note.

The yield on the benchmark government issue due in 2026 was down 6 basis points to 8.875%.

Stocks opened firmer, with the Johannesburg Top-40 Index up 1.93% to 50,730 points.

Reuters

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