JOHANNESBURG: South Africa's rand nudged higher against the dollar on Friday on a resurgence of risk appetite after hawkish US Federal Reserve minutes triggered a selloff earlier this week.
The rand was at 8.8800 to the dollar at 1500 GMT, 0.2 percent firmer than Thursday's New York close.
Global risk assets suffered while the dollar and safe haven assets strengthened after the Fed minutes released on Wednesday signaled an end to its quantitative easing programme.
"After the FOMC minutes there was a selloff in the markets across the globe but today risk appetite has returned and the rand has benefited from that," said ETM market analyst Luke Barnett.
Next week, Finance Minister Pravin Gordhan presents the national budget for 2013, while Statistics South Africa releases economic growth data for the fourth quarter of 2012, both of which could potentially move the rand.
However, Barnett said he expects 8.80 to remain a strong support level.
"Structurally, the rand is still weaker," he said. "Unless we see a move below 8.80 it's probably going to be more consolidation next week."
The yield on the 2015 government bond fell 2 basis points to 5.285 percent while that on the 2026 paper inched up half a basis point to 7.245 percent.
Comments
Comments are closed for this article.