UPDATE 1-South African rand rallies to highest in more than 2 years, stocks hit new high

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(Updates rand, bonds; adds stocks)

JOHANNESBURG, June 2 (Reuters) – The South African rand rallied to its highest in more than two years against the dollar on Wednesday, as investors cheered the latest evidence of a sustained rebound in global economies and as U.S. Treasury yields pulled back.

At 1525 GMT, the rand was 1.27% firmer at 13.5900 against the dollar, trading at its firmest since early February 2019.

With the local economy remaining weak and facing power cuts, the rand’s recent rally has been mainly on the back of global factors, including higher commodity prices which benefit resource-rich South Africa and expectations U.S. lending rates will stay lower for longer.

Riskier currencies, such as the rand, thrive on U.S. interest rates remaining low because they benefit from the interest rate differential that increases their appeal for carry trade.

Investors waited for crucial U.S. jobs data on Friday to assess what the increasing evidence of a…

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