Bonds

South Africa's rand firmer as risk selloff pauses

Credit: REUTERS/THOMAS WHITE

South Africa's rand rose early on Monday after a sharp slide in the previous week as a sell-off in risk assets globally slowed, with investors positioning for an event-packed week.

JOHANNESBURG, May 20 (Reuters) - South Africa's rand rose early on Monday after a sharp slide in the previous week as a sell-off in risk assets globally slowed, with investors positioning for an event-packed week.

At 0645 GMT the rand ZAR=D3 was 0.31% firmer at 14.4025 per dollar compared with its Friday close of 14.4475 in New York.

Last week the rand and other emerging market currencies fell as the trade spat between Beijing and Washington worsened, while solid economic data from the United States also pushed money toward to greenback - lifting the world's reserve currency to 2-week highs.

The rand shed close to 2 percent in the previous week but remained one of the better performing emerging currencies with the post-election positivity limiting losses, with investors awaiting the announcement of a new cabinet.

Before the announcement by incoming President Cyril Ramaphosa after this weekend's inauguration, Statistics South Africa publishes consumer inflation data on Wednesday and the central bank decides on lending rates on Thursday.

Bonds were steady, with the yield on the benchmark 10-year government issue due in 2026 ZAR186= adding 0.5 basis points to 8.52%.

In stocks, food group Pioneer PFGJ.J reported a decline in half-year earnings, with headline earnings per share (HEPS) falling 14%, driven down by maize shortages.

(Reporting by Mfuneko Toyana, editing by Louise Heavens)

((mfuneko.toyana@thomsonreuters.com; +27117753153; Reuters Messaging: mfuneko.toyana.thomsonreuters.com@reuters.net))

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