Rand firms as dollar loses ground

The rand firmed more than 1% in early trade on Thursday, as an easing dollar and signs of progress in talks for fresh US stimulus measures bolstered investors’ risk appetite.

At 0635 GMT, the rand traded at R16.59 per dollar, 1.06% firmer than its close on Wednesday.

“The rand is benefitting from the dollar selloff,” said Bianca Botes, executive director at Peregrine Treasury Solutions in Pretoria.

The dollar weakened, as robust US data and fresh hopes for US fiscal stimulus had investors confident enough about economic recovery prospects to seek out riskier currencies.

Government bonds also firmed, and the yield on the benchmark instrument due in 2030 was down 3.5 basis points to 9.41%.