Rand tracks emerging currencies higher

THE RAND firmed yesterday along with other emerging currencies as the dollar retreated on weak manufacturing data and geopolitical fears following North Korea’s missile test.

The rand rallied to its firmest since April 26, scaling R13.1575 to the dollar in afternoon trading, before paring gains to 1.35 percent at R13.17 by 6.30pm.

The greenback retreated as the New York Federal Reserve’s barometer on business activity in the state unexpectedly fell this month, sinking into negative territory for the first time since October, and following weak data on Friday.

A missile test by North Korea over the weekend also weighed on sentiment, allowing emerging market currencies to gain against the greenback.

Meanwhile, South African government bonds firmed alongside the currency.