The rand (sign: R; code: ZAR) is the currency of South Africa. The Rand is subdivided into 100 cents (sign: "c"). The ISO 4217 code is ZAR, from Dutch Zuid-Afrikaanse Rand (South African Rand). The Rand is legal tender in the Common Monetary Area between South Africa, Swaziland, Lesotho, and Namibia, although the last three countries do have their own currencies pegged at par with rand. Before 1976, the rand was legal tender in Botswana.
The rand was firmer against major global currencies on Thursday afternoon, leading the gains among its emerging-market peers, as investors wait for fresh catalysts.
The local currency continues to benefit from positive post-election sentiment, and the yield on the benchmark R186 bond has fallen to its lowest level in more than a year this week. Bond yields move inversely to bond prices.
Along with a post-election boost, local bonds were also benefiting from recent investor interest in major international bonds, such as US treasuries and German bunds, said Sasfin Wealth fixed-income trader Alvin Chawasema.
Local bonds could strengthen further, but uncertainty over the US-China trade war is currently limiting this, Chawasema said. The next major issue will be the composition of President Cyril Ramaphosa’s next Cabinet, while investors are also watching global economic growth closely.
At 2pm, the rand was 0.55% firmer at R14.1406/$, 0.53% stronger at R15.8425/€, and 0.76% up at R18.1206/£. The euro was flat at $1.1203.
The bid on the benchmark R186 was at 8.4%, weakening 0.15 basis points from Wednesday’s close, according to Iress data. The R186 has strengthened 54 basis points from it weakest level reached on February 14.
The US-China trade war has been the main issue driving sentiment this week, but investors are seemingly still betting on a quick resolution to the conflict, said Rand Merchant Bank analyst
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