JOHANNESBURG: South Africa's rand made minor gains against the dollar on Wednesday, as appetite for emerging markets climbed due to jitters on whether Greece would default on its debt.
Emerging market shares reached a 20-day high on Wednesday, gaining for a third day, with eastern European assets seesawing on concerns whether Europe will be able to pull off a precarious rescue deal for Greece.
At 1600 GMT the rand was trading 0.14 percent stronger at 12.1450 rand to the dollar compared with its closing level on Tuesday.
"Emerging market currencies in general are looking a little bit more perkier so there might be a little of an appetite for slightly riskier assets at the present time," Ion de Vleeschauwer, chief dealer at Bidvest Bank said.
The euro lost 0.13 percent versus the dollar on Wednesday as international creditors demands increased worry over talks aimed at unlocking aid to avert a debt default in Greece.
Domestically, traders looked towards producer inflation data due on Thursday, saying that if numbers were higher than anticipated it would raise expectation of a move towards a hike in interest rates.
Local bonds were up, with the benchmark government issue due in 2026 adding 5.5 basis point to 8.295 percent.
Comments
Comments are closed.