SA's rand firms for 3rd day as emerging markets rally

At 1535 GMT, the rand was 0.69 percent firmer at 11.5280 against the greenback.

FILE: At 1535 GMT, the rand was 0.69 percent firmer at 11.5280 against the greenback, having rallied more than 1 percent earlier in the session. Picture: Supplied

JOHANNESBURG - The rand firmed against the dollar for a third straight day on Thursday, boosted by positive emerging market sentiment after the US federal reserve suggested interest rate hikes were some way off.

At 1535 GMT, the rand was 0.69 percent firmer at 11.5280 against the greenback, having rallied more than 1 percent earlier in the session.

"What we are seeing in dollar/rand today is very much correlated to the improvement in the risk appetite that we have across markets," said Murat Toprak, forex strategist at HSBC in London.

Federal Reserve Chair Janet Yellen had said on Wednesday that it was unlikely to hike rates for "at least a couple of meetings", meaning April of next year at the earliest.

Government bonds also recovered with the yield on the benchmark 2026 paper falling 13 basis points to 7.980 percent.

Bonds were also boosted by favourable local producer price inflation (PPI).