Forex and bonds Rand gains continue on domestic data

THE RAND continued a recent run of gains yesterday after the release of better than expected mining and manufacturing data.

However, at 5pm, the local currency was bid at R13.7383 to the greenback, 3.38c softer than at the same time on Wednesday.

The rand reversed earlier losses after better-than-expected data showed that manufacturing and mining output rose by 5.6 percent year-on-year in July, but the data was mainly driven by lower base effects emanating from a platinum strike last year. Government bonds also firmed.

Meanwhile, Nigeria’s bond market regulator imposed a new spread limit yesterday to mitigate the fallout after the country’s expulsion from a major JP Morgan bond index over a lack of liquidity and currency restrictions.