South Africa's rand firms as US stimulus hopes lift global mood
- At 0640 GMT, the rand traded at 16.5225 against the US dollar, 0.4pc stronger than its previous close.
JOHANNESBURG: South Africa's rand opened higher on Friday, as hopes for US stimulus spending lifted sentiment globally, encouraging investors to buy riskier assets in emerging markets.
At 0640 GMT, the rand traded at 16.5225 against the US dollar, 0.4pc stronger than its previous close.
The expectations for stimulus in the world's largest economy have provided a welcome boost for the rand by weakening the dollar and boosting appetite for risk-sensitive currencies.
Domestic economic data continue to paint a picture of a weak recovery from a deep coronavirus-induced slump.
Investor attention will soon turn to Finance Minister Tito Mboweni's mid-term budget statement, which is expected later this month and will be scrutinised for signs the government will deliver on promised expenditure cuts.
In an emergency coronavirus budget in June, Mboweni warned that rising debt was like a hippo "eating our children's inheritance".
Government bonds rose slightly in early deals on Friday, as the yield on the 2030 instrument fell 3 basis points to 9.505pc.
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