Rand recovers after emerging market rout

Currency analysts at RMB said the rand could breach the R14.90/$ level on Friday if trading remains volatile.

FILE: The new banknotes from the South African Reserve Bank in honour of the late Nelson Mandela. Picture: Cindy Archillies/EWN

JOHANNESBURG - The rand firmed early on Friday as traders consolidated positions after the unit fell more than two percent in the previous session alongside other emerging market currencies.

At 0640 GMT the rand was 0.22% stronger at R14.68 per dollar compared to a close of R14.715/$ overnight in New York.

Currency analysts at RMB said the rand could breach the R14.90/$ level on Friday if trading remains volatile.

The rand has lost more than three percent this week and is on track for its worst monthly performance in two years, pressured by contagion from weak emerging market peers and domestic growth concerns.

Turkey’s lira tumbled on Thursday on reports that the central bank deputy governor and rate-setter Erkan Kilimci was leaving the bank.

In fixed income, the yield on the benchmark government bond due in 2026 was down 2 basis points at 9.02%.