Rand does well in line with other risk assets as dollar retreats

South African bonds were relatively steady in the afternoon, but, like the rand, have been under enormous pressure in recent weeks. The yield on the benchmark R186 was 9.26%, from 9.25% at its close on Monday.

“Some calm and stability has returned following the intense sell-off of emerging-market assets over the past few weeks,” Old Mutual Multi-Managers analysts Dave Mohr and Izak Odendaal said in an e-mailed note to clients.

“Perhaps the 10-year anniversary of the Lehman Brothers collapse reminded investors what a real crisis looks like. In contrast, the recent troubles of emerging markets are very manageable — although, clearly tough times lie ahead for Argentina and Turkey, in particular.”

At 3.21pm, the rand was at R14.8614 to the dollar, from R14.9291. It was at R17.4031 to the euro from R17.4436, and at R19.5537 to the pound from R19.6476. The euro was at $1.1710 from $1.1684.