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JOHANNESBURG: South Africa's rand steadied in late afternoon trade on Tuesday, recovering from losses earlier in the session, after news that South Africa's trade surplus had grown in March.

Stocks fell, in line with global equities, after weak Chinese business surveys doused appetite for risk.

At 1520 GMT, the rand was trading at 14.3350 per dollar, not far off its overnight close of 14.3400.

It had hit a session high of 14.2750 after data showed that South Africa had recorded a trade surplus of 5.00 billion rand ($349 million) in March after a revised 3.87 billion rand surplus in February.

Investors now await a US Federal Reserve policy meeting on Wednesday, which is expected to keep lending rates unchanged.

Traders are also keeping an eye on elections next week for parliament and provincial legislatures, which will determine the identity of the next president.

"While elections are just days away, the rand has remained relatively unresponsive to local elements," Peregrine Treasury Solutions Corporate Treasury Manager Bianca Botes said in a note.

"Rather, the rand's movements have been determined by the prevailing global backdrop and risk-on/risk-off environment, and they are not a result of any particular anticipated outcome from elections."

In fixed income, the yield on the benchmark 10-year bond rose 0.5 basis points to 8.54 percent.

On the bourse, the benchmark JSE Top-40 index was down 0.21 percent at 52,274 while the broader All-Share index closed 0.23 percent lower at 58,528.

Vodacom was among the biggest losers on the blue-chip index, falling by 2.34 percent to 115.32 rand after disputing reports that it would challenge a Competition Commission ruling that South African data prices were too high.

 

Copyright Reuters, 2019

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