JOHANNESBURG (Reuters) -South Africa’s rand was on course for gains of over 2% this week, while stocks hit a record high in intra-day trade on Friday, as upbeat U.S. economic data allayed fears of an imminent recession in the world’s top economy.
At 1643 GMT, the rand traded at 17.8850 against the U.S. dollar, up about 0.65% on Thursday’s closing level. The dollar was last down about 0.39% against a basket of global currencies.
The Johannesburg Stock Exchange’s Top-40 index hit a record high in intra-day trading on Friday. It closed over 0.7% up.
“Positive economic data out of the world’s largest economy this week has aided risk on sentiment of which South Africa is a beneficiary,” said Shaun Murison, senior market analyst at IG.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. economic data and monetary policy in addition to local data points.
Markets will likely focus on a speech from Fed Chair Jerome Powell at the Jackson Hole Symposium of global central bankers in Wyoming next week for further hints on the interest rate path of the U.S.
South Africa’s benchmark 2030 government bond was weaker as the yield gained 9 basis points to 9.32%.
(Reporting by Alexander Winning and Tannur Anders; Editing by Shounak Dasgupta and Jonathan Oatis)
