S.Africa's rand resumes rally as yield-hungry investors shift into EMs

PUBLISHED: Fri, 23 Sep 2016 07:56:45 GMT

South Africa’s rand traded firmer early on Friday, resuming a recent rally after stumbling in the previous session, boosted by renewed appetite for high-yield assets globally and investor unease over still-low interest rates in the United States.

* Rand at 13.6000 to the dollar by 0650 GMT, 0.2 percent from Thursday’s close at 13.6225.

* Rand nearly 5 percent firmer against the dollar in the week in broad emerging currency rally after Federal Reserve holds rates. Rand on track for largest weekly gains since April.

* Unit slipped in previous session after South African Reserve Bank held rates and unexpectedly hinted at end of policy tightening.

* Yield on 2026 benchmark government bond down 2.5 basis points to 8.51 percent.

* Blue chip futures index down 0.06 percent, indicating to JSE securities exchange opening flat 0700 GMT.

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