South Africa's rand firms as risk appetite improves after Brexit deal changes

JOHANNESBURG: South Africa's rand firmed against the dollar on Tuesday, helped by increased risk appetite for emerging-market currencies after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament later in the day.

The rand was at 14.3000 to the greenback by 0627 GMT, up 0.31 percent compared with the previous day's close.

The appetite for riskier assets was boosted after the European Commission head, Jean-Claude Juncker, agreed to additional assurances in an updated Brexit deal with British Prime Minister Theresa May on Monday.

"Increased risk appetite on the back of new assurances from the EU on the Brexit deal saw emerging market currencies soar, with the rand clawing back significant ground," Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions, said in a morning note.

In fixed income, the yield on the benchmark bond due in 2026 fell 1 basis point to 8.655 percent in early trade.