Rand, bonds tumble, stocks advance
THE RAND tumbled more than 2 percent yesterday, while bonds also weakened sharply as investors who had bought the assets cheap earlier in the week sold out, while firm US data also added pressure.
Stocks were firmer, as companies that earn most of their revenue outside the country got a lift from the weaker currency as its boosts their rand-denominated earnings.
At 5pm, the rand bid at R14.2238 to the dollar, 22.50c softer than at the same time on Thursday, accelerating its slide late in the session after US manufacturing data beat estimates and lifted the greenback.
Traders said the rand was knocked by a combination of firmer US data and investors squaring short positions ahead of the weekend after the rand’s surprise rally to below the R14 to the dollar technical mark earlier in the week.
Government bonds also took a hit, with the yield on the benchmark government bond due in 2026 jumping 24 basis points to 9.28 percent.
On the stock market, the benchmark JSE Top40 index rose 0.67 percent at 53 198.96 points, while the all share index was up 0.52 percent to 59 638 points. – Reuters