JOHANNESBURG: South Africa's rand strengthened on Friday, shrugging off renewed dollar strength as technical factors and a recovery in risk appetite globally helped the unit recoup recent losses, while stocks were lifted by demand for commodities.
By 1545 GMT the rand had firmed 0.8 percent to 15.6680 per dollar, further away from the 16.00 mark that traders felt would have triggered further losses.
Traders at London-based 4Cast said the currency was moving back into a value region that could ignite buying interest, after selloffs earlier in the week saw it sink to 15.9900, a two-month low.
The rand had weakened in the previous session after South Africa's Reserve Bank left its benchmark lending rate unchanged at 7 percent on Thursday, but has bounced back on its way towards resistance around 15.3800.
On the bourse, iron ore prices edged higher on Friday as steel mills recovered production which lent support to raw minerals, although traders saw this as short-term support.
Iron ore producer Assore rose 6.9 percent to 186.92 rand while Anglo American, which owns Kumba Iron Ore , strengthened 3.94 percent to 137.34 rand.
Avior Capital Markets trader Rabi Thithi said the bourse saw a relief rally from pressure seen in previous sessions boosting local commodities.
The benchmark Top-40 index rose 0.47 percent to 46,531 points while the broader All-share index climbed 0.51 percent to 52,638 points. Trade was lower, with 209 million shares changing hands versus last year's daily average of 280 million shares.
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