JOHANNESBURG (Reuters) -South Africa’s rand gained on Tuesday, as the dollar retreated amid investor demand for riskier assets.
At 1605 GMT, the rand traded at 17.2800 against the dollar, 0.19% stronger than its previous close.
The South African currency had slipped on Monday, as market sentiment was dented by worries about a rise in COVID-19 cases in China and tightening restrictions in some cities there, sending the safe-haven dollar higher.
However, recent cooler-than-expected U.S. inflation data has raised global investors’ hopes that the Federal Reserve may be in a position to slow its pace of interest rate hikes.
Investors will be looking at minutes from the Fed’s November meeting due on Wednesday for any clues on the outlook for interest rates.
The dollar index, which measures the currency against six major rivals was last trading down 0.37% at 107.37.
Shares on the Johannesburg Stock Exchange rose slightly, mirroring similar moves in global equities as improved risk appetite boosted markets.
Overall on the stock market, the Top-40 index closed 0.4% higher, while the broader all-share ended up 0.42%.
The government’s benchmark 2030 bond was lower, with the yield up 5 basis points to 10.290%.
(Reporting by Anait Miridzhanian and Bhargav AcharyaEditing by Uttaresh.V and Peter Graff)
