South Africa’s rand retreats from six-week high

PUBLISHED: Fri, 09 Apr 2021 06:27:20 GMT
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JOHANNESBURG, April 9 (Reuters) – The South African rand retreated from its six-week peak early on Friday as the market took a breather after dovish signals from the U.S. Federal Reserve spurred a risk rally.

At 0615 GMT the rand traded at 14.5725 against the dollar, 0.31% weaker than its previous close. It rallied to 14.4475 on Thursday, its strongest since Feb. 24.

The rand was awaiting a new catalyst to provide direction following the recent risk rally, said Citadel Global executive director Bianca Botes.

Emerging market currencies rose this week on weakness in the dollar and U.S. treasury yields after the minutes from the Fed’s latest meeting showed that the bank was in no hurry to tighten monetary policy.

Lower U.S. interest rate expectations boost investor appetite for emerging markets assets, such as the rand, which offer higher returns but carry more risk.

Government bonds also weakened in early deals, with the yield on the benchmark instrument due in 2030 up 1.5 basis points at 9.235%. (Reporting by Olivia Kumwenda-Mtambo Editing by David Goodman )

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