Johannesburg - The rand was in firmer territory against the dollar on Thursday after five prior straight losses, reaching its strongest in nearly a week as dovish comments from the US Federal Reserve weighed on the greenback.
The rand climbed to as high as R10.4705/$, a level last reached on April 11 according to Thomson Reuters data, and was trading at R10.4750/$ by 15:30 GMT, up 0.87% from Wednesday's close.
Trading volumes were fairly thin, with most traders reluctant to take meaningful positions ahead of financial market closures in South Africa on Friday and Monday for the Easter holiday, dealers and analysts said.
The rand tracked a generally firmer trend among emerging market assets, which carry more risks but offer investors higher yields, and benefited from comments overnight by Fed Chair Janet Yellen that low interest rates are needed to support the US economy.
"Dollar-rand is showing signs of topping out in the short term, with R10.5800/$ offering moderate resistance recently and more dovish Fed comments helping to spark some selling interest around these levels," Tradition Analytics said in a note.
South African government bonds tracked the rand firmer, and yields inversely fell, helped by renewed foreign investor interest after a sell-off earlier in the year.
The yield for the 2026 secondary market benchmark closed 10 basis points lower at 8.375% while the 2015 bond at the shorter end of the curve gave up 8 basis points to 6.715%.
The rand climbed to as high as R10.4705/$, a level last reached on April 11 according to Thomson Reuters data, and was trading at R10.4750/$ by 15:30 GMT, up 0.87% from Wednesday's close.
Trading volumes were fairly thin, with most traders reluctant to take meaningful positions ahead of financial market closures in South Africa on Friday and Monday for the Easter holiday, dealers and analysts said.
The rand tracked a generally firmer trend among emerging market assets, which carry more risks but offer investors higher yields, and benefited from comments overnight by Fed Chair Janet Yellen that low interest rates are needed to support the US economy.
"Dollar-rand is showing signs of topping out in the short term, with R10.5800/$ offering moderate resistance recently and more dovish Fed comments helping to spark some selling interest around these levels," Tradition Analytics said in a note.
South African government bonds tracked the rand firmer, and yields inversely fell, helped by renewed foreign investor interest after a sell-off earlier in the year.
The yield for the 2026 secondary market benchmark closed 10 basis points lower at 8.375% while the 2015 bond at the shorter end of the curve gave up 8 basis points to 6.715%.