JOHANNESBURG: South Africa's rand traded firmer on Wednesday, tracking a stronger euro in low volume trade and as investors closed positions ahead of year-end.
Stocks inched lower as the anticipation of faster than expected rate hikes in the United States following last week's increase continued to weigh.
At 1500 GMT the rand traded 0.3 percent firmer to 13.9525 per dollar, adding to the previous session's gains to move closer to short term resistance level at 13.90 that could see the rally continue.
Traders and analysts have however cautioned that thin volumes in the final trading days of 2016 might exaggerate the currency's moves.
The rand, along with other emerging market currencies, also benefited from a weaker dollar as investors cashed-in profits on the rally that has seen the greenback rack up 4.5 percent in the 1-1/2 months since Donald Trump clinched a presidential poll. Bonds barely budged from the previous session's levels, with the benchmark paper due in 2026 cutting 1 basis point to 8.985 percent.
On the bourse, the JSE All-share index closed 0.36 percent lower at 50,163 and the broader All-share index ended 0.44 percent to 43,563.
Trading volumes were low with 127 million shares changing hands, or about 40 percent of last year's daily average.
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