JOHANNESBURG: South Africa's rand firmed on Friday, taking gains for the week to almost 3 percent on rising investor confidence in Africa's biggest economy and the political environment.
By 1520 GMT the rand had advanced 0.44 percent to 13.469 per dollar, just off a 10-month high, with further gains on the horizon as investors search for high yielding assets.
Upbeat South African manufacturing data on Thursday, a buoyant gold price and growing risk appetite for emerging market assets all helped boost the local currency. "Data released this week confirmed that a technical recession is definitely not on the cards," analyst at First National Bank Mamello Matikinca said in a note.
Local elections last week have been received positively by investors as opposition parties beat the ruling African National Congress in key urban centres, raising the likelihood of economic reforms. On the bourse, the Top-40 index rose 1.1 percent to 45,703 points while the broader all-share gained 0.93 percent to 52,806 points.
Bonds continued to firm, with the yield benchmark government paper due in 2026 falling 3 basis points to 8.41 percent. US retail data due later could offer direction for emerging market assets as investors try to gauge the timing of an interest rate hike by the Federal Reserve.
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