JOHANNESBURG: South Africa's rand climbed off the previous day's three-week lows against the dollar on Wednesday, helped by reviving global risk appetite and stronger local business surveys.
A survey showing South Africa's HSBC Purchasing Managers' Index snapped out of a four-month contraction in August, after the end of a protracted strike among metals and engineering workers, boosted market sentiment.
Another report, pointing to a recovery in business sentiment in South Africa from July's 15-year low, was also rand-positive.
The currency traded at 10.6850 to the greenback by 1611 GMT, up 0.54 percent from Tuesday's close.
"It's a bit of a risk-on day, because of headlines coming out of Russia which have been positive for emerging markets," said Rand Merchant Bank trader Jim Bryson.
"The rand couldn't sustain a break of 10.74 and has been supported around 10.67. It's trading in narrow ranges, very much headline driven."
Global risk appetite picked up after Russian President Vladimir Putin said on Wednesday a deal to end fighting in eastern Ukraine could be reached this week.
The stand-off between Russia and Ukraine has channelled capital flows into traditionally lower-risk currencies rather than volatile emerging market economies such as South Africa.
Government bonds were also firmer on Wednesday, with the yield for the 2026 benchmark easing 9 basis points to 8.025 percent.
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