South Africa's rand clawed back losses on Tuesday, firming slightly alongside local bonds as a selloff triggered by the spread of the coronavirus was halted by technical factors curbing big movements in either direction.
At 1530 GMT the rand was 0.14% firmer at 14.5850 per dollar, back from a slide to 14.7120, its weakest in two months, with emerging markets engulfed by risk aversion as the outbreak of virus in China reactivated fears for global growth.
The rand's run beyond the 14.60 technical level did not last as buyers returned, although some traders warned the recovery could be temporary as investors continue to assess opportunities and the impact of the coronavirus.
News that a state-owned bank would give cash-strapped South African Airways (SAA) 3.5 billion rand ($244 million) of emergency funding to keep operating while it wraps up its business rescue process also soothed investor concerns.
Bonds also recovered, with the yield on the benchmark 2026 issue down 6 basis points to 8.085%.
Stocks closed down slightly, with the Johannesburg Stock Exchange's Top-40 index 0.3% lower at 49,800 points and the broader all-share index down 0.28% to 55,748 points.
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