Market News
South African rand recoups some losses against dollar - REUTERS
BY Bhargav Acharya
JOHANNESBURG, Nov 7 (Reuters) – South Africa’s rand recouped some losses on Thursday, a day after emerging market assets took a hit following Donald Trump’s win in the U.S. election.
At 0820 GMT, the rand traded at 17.5175 against the dollar, over 0.7% stronger than its previous close. The local currency fell about 2.5% against the greenback at one point on Wednesday amid volatile trading.
The dollar slipped from a four-month high and was last down 0.3% against a basket of currencies, ahead of an interest rate decision by the Federal Reserve later in the day.
The Fed is expected to reduce rates by 25 basis points, while market focus will also be on further clues from the U.S. central bank on the way forward.
Locally, data released by South Africa’s central bank earlier showed the country’s net foreign reserves rose to $61.197 billion at the end of October from $61.029 billion in September.
On the stock market, the Top-40 index was last up 0.7%.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 10 basis points to 9.3%.
(Reporting by Bhargav Acharya; Editing by Christina Fincher)
