South Africa's rand strengthened on Wednesday as hopes of a trade deal between the United States and China bolstered risk appetite globally, while stocks also strengthened in line with global market optimism. At 1541 GMT the rand was 0.42 percent firmer at 14.1500 per dollar compared with a close of 14.2100 in New York on Tuesday.
Demand for emerging-market currencies grew after the Financial Times reported China and the US had resolved most of the issues standing in the way of a trade deal. White House economic adviser Larry Kudlow said also on Tuesday China and the United States expect to "make more headway" in trade talks this week.
The rand was hovering close to a one-month high of 14.0750 reached on Tuesday after Moody's struck a surprisingly positive note in a credit opinion, following the agency's decision on Friday to delay a review that might have removed South Africa's last investment-grade rating. On the bourse, the markets gained with the Johannesburg All-Share index rising 1.34 percent to 57,926 points while the Johannesburg Top-40 index was up by 1.35 percent to 51,641 points.
Among the gainers were financial shares, with ABSA up 4.22 percent to 164,60 rand and Standard Bank closing up 2.09 percent to 194.61 rand. In fixed income, the yield on the benchmark government bond due in 2026 added a single basis point to close at 8.53 percent.
Comments
Comments are closed.