JOHANNESBURG: South Africa's rand was little changed on the first trading day of 2018, giving up earlier gains in late trade after it was buoyed by improved sentiment for emerging currencies and a sluggish dollar.
At 1500 GMT, the rand was 0.26 percent softer at 12.4125 per dollar, still within easy striking distance of its 2-1/2-year high of 12.2400.
The currency advanced by about 13 percent in 2017, making most of those gains after Cyril Ramaphosa was elected president Jacob Zuma's successor as head of the African National Congress (ANC) last month.
It has also been boosted by recent global demand for resources such as gold and platinum, supporting capital inflows and demand for the currency.
The spot price of bullion hit its highest since late September on Tuesday, extending a year-end rally that saw the metal rise 4.4 percent in the last three weeks of 2017.
But volumes in the rand remained low in the wake of the festive season holidays, exaggerating moves in either direction.
Technical and momentum indicators suggest the rand is in overbought territory that could see a sell off back to around the 12.5000 mark later in the week.
On the bourse, Steinhoff was in demand as investors chased after bargains from the company in the throes of an accounting scandal that has wiped off around 90 percent from its market value. Its shares gained 7.5 percent on the day.
Overall, the blue-chip JSE Top-40 index added 0.55 percent to 52,823 and the broader All-share index gained 0.38 percent to 59,731.
In fixed income, government bonds edged firmer, with the yield on the benchmark government paper due in 2026 down 1.5 basis points at 8.59 percent.
Comments
Comments are closed for this article.