Rand retires from six-week summit


The South African rand pulled back from its six-week high early Friday as the market took a break after accommodative signals from the US Federal Reserve spurred a rally in risk.

At 6:15 am GMT, the rand was trading at Rand 14.57 against the dollar, 0.31% weaker than its previous close. It rallied to R14.44 on Thursday, its strongest since February 24.

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The rand was waiting for a new catalyst to provide direction in the wake of the recent risk rally, Citadel Global executive director Bianca Botes said.

Emerging market currencies rose this week on weak dollar and U.S. Treasury yields after minutes from the last Fed meeting showed the bank was in no rush to tighten policy monetary.

Falling interest rate expectations in the United States are boosting investor appetite for emerging market assets, like the rand, which offer higher returns but carry more risk.

Government bonds also weakened in the first trades, with the benchmark yield expected in 2030 up 1.5 basis points to 9.235%.

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