JOHANNESBURG: South Africa's rand rallied to its firmest in four months on Thursday, shrugging off mixed data after the country's top court ordered the President Jacob Zuma to repay the state for some upgrades to his private home.
Stocks were weaker as some resource companies suffered. "The rand has outperformed pretty much everything today, gains which point to the politics," said Rand Market Bank currency strategist John Cairns.
The currency opened on the front foot following a global rally of emerging assets, then raced to its firmest since the sacking of the finance minister in December, after the Constitutional Court said Zuma was liable for a portion of the 240 million rand ($16 million) spent on renovating the residence.
By 1600 GMT the rand gained 1.5 percent to 14.7200 per dollar. Bonds also firmed, with the benchmark 2026 yield falling 6 basis points to 9.125 percent, extending price gains to near a two-week high.
The day's data showed South Africa's economy remained on the ropes, with producer inflation quickening as higher interest rates and severe drought weighed, while the trade account remained in deficit.
Among the JSE's blue-chips, resources conglomerate BHP Billiton was the biggest loser, declining 3.53 percent to 166 rand.
The benchmark Top-40 index was 0.61 percent weaker at 46,139 points while the All-Share index shed 0.47 percent to 52,250 points.
Trade was below par with around 258 million shares changing hands, compared with last year's daily average of 296 million, according to preliminary bourse data.
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