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At 14:53 GMT, the rand traded at 13.6250 to the dollar, 1.16% firmer than its New York close of 13.7850.
Image: provided.
JOHANNESBURG – The rand strengthened on Thursday against the dollar's decline, alongside emerging markets and lower bond yields, while dovish comments by US Federal Reserve Chairman Jerome Powell boosted demand more risky badets.
The shares were weighed down by the heavy market, the Naspers, and losses in so-called rand hedges – double-quoted shares that normally benefit when the rand weakens.
At 14:53 GMT, the rand traded at 13.6250 to the dollar, 1.16% firmer than its New York close of 13.7850. The currency touched a better intraday of 13.6100.
"The rand's strong performance has a lot to do with what the Fed chairman said yesterday with regard to the upside cycle, which opened the door to risk sentiment, as the position was less hawkish," he said. said ETM economist Halen Bothma.
Powell's comments that US interest rates were "just below" neutral put the dollar behind.
The rand hit record highs of four months, dismissing data showing that growth in credit demand had slowed in October.
"The rand has won most of its lost ground in August and could still progress. However, this will depend on the G20 meeting and local data, "Bothma said.
The market is closely following a meeting between US President Donald Trump and Chinese leader Xi Jinping at the G20 summit on Saturday, during which leaders are expected to discuss trade.
Bonds also strengthened as the benchmark bond yield was due in 2026, down 14 basis points to 8.900%.
"Local bonds have also made good progress (with yield) of more than 10 basis points, one of the largest movements since the end of September," said Bothma.
In equities, the All Share index lost 51% of the decline, or 0.30%, while the index of the top 40 stocks dropped 0.21% to 45,703 points.
"The volumes were a little better and we performed well despite Naspers and the rand hedges on the market," said Ryan Woods, trader at Independent Securities.
Naspers slipped 2.57% to R2 820 after Hong Kong technology giant Tencent, which it holds 31%, closed down, parallel to Asian markets.
Rand Covers, such as luxury retailer Richemont, slid from 1.30 to 90.80 to GBP 1.80, penalized by a firmer local currency.
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