JOHANNESBURG (Reuters) -South Africa’s rand was not deterred by dollar gains on Thursday, firming after stronger-than-expected U.S. economic data and as markets look toward Federal Reserve comments at a meeting of global central bankers next week, analysts said.
At 1535 GMT, the rand traded at 18.00 against the dollar, about 0.4% firmer than its previous close.
The dollar rose against a basket of global currencies on Thursday after U.S. economic data eased fears of a recession risk and dampened expectations for aggressive interest rate cuts in the world’s biggest economy.
“Despite the dollar firming across the board against most major currencies… EM (emerging market) currencies have still been able to grind out gains,” said Wichard Cilliers, head of market risk at TreasuryONE.
“Tomorrow’s data calendar has little to be wary of, and markets are likely waiting for FOMC comments at the Jackson Hole symposium later this month,” Cilliers added.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. economic data and monetary policy, in addition to local data points.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed up over 1%.
South Africa’s benchmark 2030 government bond was weaker, as the yield gained 9.5 basis points to 9.23%.
(Reporting by Alexander Winning and Tannur Anders; Editing by Shounak Dasgupta and Bernadette Baum)
