Rand on firmer footing

Picture: Siphiwe Sibeko

Picture: Siphiwe Sibeko

Published Aug 13, 2015

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Johannesburg - South Africa's rand on Thursday rose off multi-year lows hit in the previous session as the rout prompted by China's surprise currency devaluation showed signs of dissipating.

By 06h44 GMT the rand was mostly flat at 2.7600 versus the dollar compared with its closing level at 12.7580 on Wednesday.

The rand had plumbed a low of 12.8750 on Wednesday, the weakest it has been since December 2001 according to Thomson Reuters data.

The local unit has tumbled nearly 2 percent this week after China intervened to sharply devalue the yuan, hitting currencies in emerging markets that export commodities to the world's second biggest economy.

“Global markets, and so the rand, have recovered as the pace of yuan devaluation slows and as US markets stabilise,” Rand Merchant Bank currency analyst John Cairns said.

Government bonds were weaker in early trade, and the benchmark 2026 paper was yielding 4.5 basis points higher at 8.15 percent.

REUTERS

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