JOHANNESBURG: South Africa's rand firmed on Monday, resuming the previous week's rally as commodity-linked currencies globally attracted investors hungry for higher-yield assets in the face of fading chances of US interest rate hikes.
The bourse was lower, as the firmer currency hurt resource stocks that rely on a weaker rand to boost export earnings. By 1545 GMT the rand had gained 1.45 percent to 13.2845 per dollar, compared to its Friday close at 13.4800 in New York.
The rand was the strongest in a list 15 emerging markets currencies tracked by Reuters, bringing gains against the dollar for the month to more than 6 percent.
"With sentiment now favouring emerging markets again and commodity prices firming up from historically low levels, it is no wonder that the rand has done well," Old Mutual analyst Izak Odendaal said in a note.
Spot gold was up 0.3 percent while silver rose 0.6 percent, boosted by diminishing expectations of an interest rate hike by the Federal Reserve after data on Friday showed a moderation in consumer spending.
Bonds weakened slightly, with the yield on the benchmark government issue due in 2026 up 0.5 basis points to 8.435 percent.
On the bourse, resource stocks suffered with Anglogold Ashanti the biggest loser among the blue chips, despite the bullion price inching higher.
"You have a higher gold price, but in rand terms it's still weaker," Sanlam Private Wealth Director Greg Katzenellenbogen said. Platinum producers lost ground for the same reason, he said. Shares in Anglogold Ashanti were down 5 percent at 283.44 rand, while Impala Platinum fell 3.8 percent to 64.77 rand.
The benchmark Top-40 index was 0.87 percent weaker at 45,304 points while the All-Share index fell 0.77 percent to 52,398 points.
Trade was muted with about 185 million shares changing hands, according to preliminary bourse data.
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