Reuters logo
South Africa's rand recovers after hitting 6-month low
October 10, 2017 / 7:00 AM / 2 months ago

South Africa's rand recovers after hitting 6-month low

JOHANNESBURG, Oct 10 (Reuters) - South Africa’s rand firmed against the dollar early on Tuesday, recovering from a six-month low hit in the previous session as emerging market currencies suffered a broad sell-off.

* At 0643 GMT, the rand traded at 13.7450 per dollar, 0.4 percent firmer than its overnight close on Monday.

* “The dollar has faltered, bringing relief to the rand and other EM currencies,” Rand Merchant Bank currency analyst John Cairns said in a note. “Event and data risks are non-existent so sentiment will dominate trading.”

* The rand fell as much as 13.8650 versus the dollar on Monday, its weakest level since April 11, as emerging markets were hurt by rising U.S. Treasury yields and risk-off mood following a visa spat between Turkey and the United States.

* South Africa is highly susceptible to global investor sentiment as the country relies on foreign money to cover its large budget and current account deficits.

* In fixed income, the yield for the benchmark government bond due in 2026 was down 4 basis points to 8.745 percent.

* Stocks were set to open flat at 0700 GMT, with the JSE securities exchange’s Top-40 futures index barely changed. (Reporting by Olivia Kumwenda-Mtambo Editing by Jeremy Gaunt.)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below