Greenback’s slip a gain for the rand

THE RAND gained more than 1 percent against the dollar yesterday as the greenback slipped, with investors pushing back bets of a rate hike by the Federal Reserve this year.

At 5pm, the rand was bid at R13.3651 to the dollar, 22.74c firmer than at the same time on Tuesday. Government bonds lapped up the return of risk appetite to extend a recent rally. Yields on the benchmark 2026 paper fell for a seventh consecutive session.

The US’s trade deficit widened by its most in five months in August, reinforcing expectations that the Fed would delay hiking rates.

“Calming emerging markets have helped the rand stage somewhat of a comeback and dragged local government bond yields to ranges last seen in early August,” an analyst at NKC African Economics said.