Rand firms on weaker dollar

THE RAND firmed by 1% against to the dollar after the greenback weakened for a second straight session, while stocks firmed across the board tracking the stronger rand.

Comments by the US Federal Reserve chairperson Jerome Powell on Friday suggested a slower pace of monetary tightening, putting pressure on the dollar.

At 5pm, the rand traded at R14.1336 to the dollar.

“It’s mainly due to the slide in the dollar. I don’t believe it’s any local factors,” said Treasury One dealer Andre Botha.

Powell said on Friday that the US central bank was sticking with its strategy of gradual rate hikes to protect economic growth.

“It’s a better time for emerging markets,” said Afrifocus Securities derivatives trader Cheslyn Francis.

He said emerging markets have attracted inflows despite the trade war between the US and China.

In fixed income, the yield on the benchmark government bond due in 2026 was down three basis point to 8.87%.

On the JSE, the All Share Index closed 1.46% stronger at 59,656 points. The blue-chip Top 40 Index rose 1.54% to 53,555 points.

Bullion producer Harmony Gold rose 3.84% to R23.52, followed by diversified miner Sibanye-Stillwater, which closed 3.98% up to R8.36 as the spot price of the precious metal recovered. – Reuters