Rand, bonds retreat ahead of rates decision

THE rand retreated against the dollar, giving up gains driven by improving appetite for emerging markets assets and a set of local data showing momentum was returning to the domestic economy.

Stocks were weaker for a third session as Life Healthcare and diversified mining firms weighed.

At 1500 GMT, the rand traded at 12.4800 per dollar, 0.24% weaker from its New York close on Thursday. The unit is trading at its strongest level since July 2015, according to Thomson Reuters data.

Market focus is shifting to the interest rates decision by the South African Reserve Bank next week. Government bonds also weakened, and the yield for the benchmark instrument due in 2026 rose 4.5 basis points to 8.365%.

On the stock market, the benchmark Top-40 index was down 0.4% at 44 662 points, while the broader All-share index was 0.4% weaker at 51 816.

Life Healthcare extended losses it suffered on Thursday after announcing a sharper than expected discount on its R9 billion rights offer. – Reuters