Rand strength­ens to two-month high

The Star Early Edition - - MARKETS -

THE RAND gained more than 2 per­cent yes­ter­day to hit its strong­est level in two months as the dol­lar plunged on con­cerns over US Pres­i­dent-elect Don­ald Trump’s eco­nomic strat­egy.

At 5pm, the rand was bid at R13.4628 to the dol­lar, 40.48c stronger than at the same time on Wed­nes­day.

“It was largely global fac­tors af­fect­ing the cur­rency,” ETM An­a­lyt­ics an­a­lyst, Jana van Deven­ter, said.

“He (Trump) failed to of­fer clar­ity on the fis­cal and eco­nomic di­rec­tion his ad­min­is­tra­tion will take.”

Bonds strength­ened along with the rand. The yield for the bench­mark gov­ern­ment bond due in 2026 dropped to its level since Novem­ber 8.

Mean­while, the Turk­ish lira re­bounded as dol­lar weak­ness helped it move off record lows.

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