#RandReport: Rand slips to 10-day low, stocks up as resources gain
The rand extended losses, slipping 0,4 percent to 13,4915 per dollar, after failing to shrug-off aversion.
JOHANNESBURG - The rand fell to a 10-day low to the dollar as domestic weakness and global fears continued to weigh on the unit, while stronger mining shares sparked a recovery in stocks.
The rand extended losses, slipping 0,4 percent to 13,4915 per dollar, after failing to shrug-off aversion for the unit as investors awaited United States jobs data on Friday.
"The currency is going to remain under pressure especially as we get closer to the Fed's announcement on interest rates," said Ion de Vleeschauwer, chief currency dealer Bidvest Bank.
A positive jobs figure from the US will bolster the case for a rate hike by the US Federal Reserve at next week's policy meeting. The rand had made some gains to the 13,20 resistance level before sliding back.
"We've seen a lot of importers buying as well as plenty of locals buying the currency even at these inflated levels, which is showing that the market is slowly but surely getting used to a weaker rand," de Vleeschauwer said.
Yields on government bonds were mixed on the day, with the benchmark 2026 issue flat at 8,465 percent.
The equity market recovered on Wednesday after starting the week on a downbeat note tracking major overseas markets on growing concerns about a China-led global economic slowdown.
The blue-chip JSE Top-40 index ended 1,67 percent higher at 43,699 and the broader All-share index lost 1,47 percent to 49,228.
"It's all about sentiment at the moment," said Bruno van Eck, a trader at Thebe Stockbroking.
"We're seeing quite a lot of money coming out of China being invested in other emerging markets like ourselves."
The benchmark Top-40 index rose as industrial metal prices such as copper, bourse and mining heavyweight BHP Billiton rallied 2,24 percent to 219,24 rand as rival Anglo American climbed 1,59 percent to 141,45 rand a share.
Gold miners dominated the decliners' list, with Gold Fields skidding 7,2 percent to 37,26 rand as the price of bullion eased.