JOHANNESBURG: South Africa's rand firmed on Monday, helped by increased risk appetite as investors bet again on a global economic recovery.
The rand was 0.42% stronger at 16.7000 against the dollar at 1530 GMT, its best level since June 11, having gained steadily since opening above the 17.00 mark last Monday. The gains have been driven mainly by global sentiment rather than domestic factors, with investors searching for high yields on hopes for a quick economic recovery despite a global surge in COVID-19 infections.
The Johannesburg Stock Exchange (JSE) started the week with a big jump with the FTSE/JSE All Share Index closing up 1.41% to 56,199 points while the FTSE/JSE Top 40 Companies' Index up 1.41% to end at 51,875 points.
Bonds also firmed, with the yield on the benchmark 2030 government issue down 4.5 basis points at 9.45%.