South Africa's rand firmer, long-term risks linger

PUBLISHED: Mon, 05 Sep 2016 08:57:19 GMT

South Africa’s rand stretched gains to a third consecutive session on Monday, helped by lower chances of a rate hike in the United States and an easing of the political concerns that pushed the currency to a one-month low last week.

* Rand 0.95 percent firmer at 14.3825 per dollar at 0640 GMT versus close of 14.5200 in New York on Friday.

* Government bonds also firmer, yield on benchmark 2026 paper down 4 basis points to 8.9 percent.

* Local assets buoyed alongside emerging market peers by weak U.S. employment data on Friday that trimmed bets of Federal Reserve interest rate hike this month.

* Political risk remains elevated, with civil society groups planning to march on ANC headquarters demanding President Jacob Zuma resign.

* Blue chip futures index up 0.74 percent, indicating bourse to open higher at 0700 GMT.

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