Politics

South Africa's rand firms on falling dollar, stocks up

Reuters

JOHANNESBURG, April 12 () - South Africa's rand was set to end the week on a firmer footing on Friday as the U.S. dollar weakened, while signs of economic stabilisation in China boosted demand for riskier assets.

At 1517 GMT, the rand had strengthened by 0.57 percent to 13.9275 per dollar, staying close to a six-month high of 13.8725 hit on Thursday.

"The rand is on route to securing its second straight week of gains against the dollar despite disappointing domestic economic data weighing on sentiment," said FXTM research analyst Lukman Otunuga in a note.

Investors' appetite for riskier currencies was boostedon Friday after Chinese data showed exports rebounded last month, helping offset weaker imports, and by reports of another reduction in Germany's growth forecasts, analysts said.FRX/

In fixed income, the yield on the benchmark government bond due in 2026 fell 0.5 basis points to 8.485 percent.

Bourses strengthened, following the rand higher on the back of better-than-expected U.S. bank results.

The Johannesburg All-Share index gained 0.38 percent to 58,405 points, and the Top-40 index increased by 0.38 percent to 52,142 points.

Consumer staples led the blue-chip index higher, with Africa's largest supermarket group Shoprite gaining 3.2 percent to 175.99 rand and Bid Corporation rising 1.74 percent to 293 rand.

Gareth Curry, a portfolio manager at Sanlam Private Wealth, said better-than-anticipated U.S. bank results had pulled up U.S. stocks, ultimately helping the South African market.

"On the back of [a stronger Dow], the dollar was a little weaker, which is assisting the rand to strengthen, which in turn is assisting the all-share to go up," he said.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More