Rand gains as the dollar plunges

THE RAND and mining stocks strengthened yesterday as the dollar plunged on US stimulus uncertainty, although AngloGold Ashanti weakened more than 4 percent after saying it might retrench 8 500 workers. The benchmark JSE Top40 index was up 0.48 percent at 45 504.55 points and the broader all share index gained 0.32 percent to reach 51 596.84 points. Lonmin and Royal Bafokeng Platinum climbed 3.81 percent to R10.90 and 2.59 percent to R32.90 respectively, as platinum firmed 0.49 percent at $922.70 (about R11 905) an ounce. “We’ve seen the dollar for the greater part of the day coming off against most major currencies and that has given some of these resource stocks some relief,” Paul Chakaduka, a trader at Global Trader said. By 5.15pm, the rand had gained 0.36 percent to R12.9725 to the dollar.

THE RAND and mining stocks strengthened yesterday as the dollar plunged on US stimulus uncertainty, although AngloGold Ashanti weakened more than 4 percent after saying it might retrench 8 500 workers.

The benchmark JSE Top40 index was up 0.48 percent at 45 504.55 points and the broader all share index gained 0.32 percent to reach 51 596.84 points.

Lonmin and Royal Bafokeng Platinum climbed 3.81 percent to R10.90 and 2.59 percent to R32.90 respectively, as platinum firmed 0.49 percent at $922.70 (about R11 905) an ounce.

“We’ve seen the dollar for the greater part of the day coming off against most major currencies and that has given some of these resource stocks some relief,” Paul Chakaduka, a trader at Global Trader said.

AngloGold Ashanti dropped 4.29 percent to R132.23 after it said it might lay off 30 percent of its workforce as part of restructuring programme.

By 5.15pm, the rand had gained 0.36 percent to R12.9725 to the dollar, dipping below the psychological R13 level as investors sold the greenback and bought emerging currencies.

Gold, seen as a safer alternative investment during times of political and financial uncertainty, was up 0.3 percent to $1 248 an ounce at 5pm, helping lift the rand as South Africa is one of the world’s top exporters of the commodity.

The rand has see-sawed this week amid policy uncertainty ahead of the ANC’s policy conference at the weekend, erasing most of the gains driven by an intense worldwide hunt for highyield assets.

Bonds were weaker, with yields at a one-month highs.