JOHANNESBURG: South Africa's rand firmed on Thursday, helped by favourable sentiment for emerging market currencies and upbeat retail sales data a day earlier, while stocks ended higher lead by pulp and paper producer Sappi .
At 1511 GMT, the rand traded at 14.2300 to the US dollar, 1.15 percent firmer than its close on Wednesday.
The rand is up around one percent against the dollar since last Friday, after a torrid few weeks in which it has been battered by the increasing likelihood that South Africa's credit ratings will be downgraded further this month.
S&P Global and Moody's are scheduled to review South Africa's ratings on Nov. 24, and a one-notch downgrade of the local-currency rating by both agencies could trigger forced selling of up to $12 billion of the country's bonds.
Halen Bothma at ETM Analytics said the rand was getting a temporary reprieve on Thursday partly due to retail sales data on Wednesday which had painted a more robust picture of the economy than expected.
"After a selloff in the rand, the market sometimes turns. But I wouldn't say it's a major fundamental move," Bothma added.
Emerging-market currencies including the Russian rouble were also rallying elsewhere on global markets.
In fixed income, the yield on the benchmark government bond due in 2026 closed 5 basis points lower at 9.36 percent, reflecting stronger bond prices.
On the bourse, stocks ended higher as Sappi rose 4 percent after the company reported higher full-year profit.
The Top-40 index closed up 0.7 percent at 53,378.66, while the broader all-share ended 0.6 percent higher at 59,549.22.
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