South Africa’s rand firms as dollar falls, stocks up marginally

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At 1530 GMT the rand was 1.16% firmer at 13.4725 per dollar, trading at a new 28-month high.

The rand rallied 2% this week and has gained more than 8% against the dollar this year so far.

“The strengthening bias in the rand remained broadly intact this week. … Most of the directional impetus has stemmed from the weaker U.S. dollar and higher commodity prices that have boosted South Africa’s exports,” said Kamilla Kaplan of Investec.

“Concurrently, expectations of the U.S. (Federal Reserve) tolerating higher inflation and leaving monetary policy accommodative for some time has benefited high yielding assets.”

The dollar fell on Friday after U.S. nonfarm payrolls data showed hiring increased in May as the pandemic eased, but not quite as much as expected, tempering expectations the Fed will tighten monetary policy sooner, rather than later.

Government bonds also firmed, and the…

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