JOHANNESBURG: South Africa's rand retreated on Tuesday, pulling back from a strong rally as risk demand globally paused with investors eyeing the US central bank's latest policy meeting. At 1630 GMT, the rand was 0.53% weaker at 16.5600 per dollar, stepping back from a Monday best of 16.3925.
Bonds also backtracked. The yield on the benchmark instrument due in 2030 rose 3 basis points to 9.185%. The Johannesburg Stock Exchange (JSE) inched up, with the FTSE/JSE All Share Index 0.29% higher at 56,488 points and the Top 40 Companies Index up 0.25% at 52,043 points.
Kumba Iron Ore reported a 17% drop in interim earnings, weighed down by lower sales volumes and the impact on output of a coronavirus-induced lockdown. Overall the mining index had dipped 0.52% on the day, with the gold miners's list slipping 1.1%. On the upside, the retailer's index climbed 1.5%
The US Federal Reserve meets on Tuesday and Wednesday, and is expected to reiterate a dovish policy stance and the benefits of an average inflation target, which would allow rates to stay lower for longer, a boon for high-yielding assets.
The International Monetary Fund late on Monday approved $4.3 billion in emergency financing for South Africa to help address the "severe economic impact" and health challenges of the coronavirus pandemic.