The rand firmed to a three-week high resistant to the dollar on Thursday following your central bank left its benchmark repo rate unchanged as well as US currency slipped for their lowest since July.
Equities rose for just a third session according to global markets that continued to shrug off lingering concerns above the US-China trade war.
The rand was trading at 14.42 per dollar at 1542 GMT, up 1.47% from Wednesday’s close and it is strongest since August 30.
The central bank left its benchmark repo rate at 6.5% on Thursday, together with the bank’s governor striking a much more hawkish note than at the last rate meeting in July.
“We presume how the pressure for just a rate hike that’s been welling in recent months will ebb,” said Capital Economics’ senior emerging markets economist John Ashbourne.
“The big falls inside the rand at the moment are probably behind us. Indeed, the currency has rebounded since reaching the minimum time of early September.”
President Cyril Ramaphosa will on Friday detail a stimulus bundle used to reignite growth, while using economy having shrunk 0.7% within the second quarter, unexpectedly tipping the united states into its first recession since 2009.
The dollar slipped to its lowest levels since July 9 on concern covering the impact of the trade row between China plus the U . s ..
In fixed income, the yield over the benchmark government bond due in 2026 was flat at 9.09%.
On stock exchange trading, the blue-chip Top-40 index was 0.25% firmer at 50,397 points although all share index was up 0.18% at 56,547 points.
A bounce in global stocks on relief that fresh US and Chinese tariffs on reciprocal imports were less harsh than feared continued on Thursday, though investors remained wary around the next steps in the trade war.
Aspen Pharmacare ended a five-day losing streak, rising 2.3% after shares slumped on investor concerns with regards to the sale of the company’s baby food unit to France’s Lactalis and concerns over its debt levels.
“Today’s (Aspen Pharmacare) rebound may be the market on the grounds that yesterday’s sell-off was probably overdone a lttle bit,” said Michael Treherne, portfolio manager at Vestact.
“At any given time, I don’t understand the stock price recovering to where it had become before the other day. The market may appear far more cautious due to their debt levels.”
Telecoms giant MTN closed that has a 6.5% gain after Nigeria’s central bank said on Wednesday that it was reviewing information offered by this company and four banks regarding a dispute for the repatriation of dividends.?