The rand recovered its footing against the dollar today (Tuesday) after two days of volatile trading spurred by Britain’s decision to leave the European Union.
The stock market also got off to a firm start at 08:00, with the Top-40 index adding 1.3%, while the All-share index was up 1%.
The rand scaled a session high of R15.1675 to the greenback, and was trading at R15.1875 by 08:05, up 1.5% from Monday’s close.
It also gained 1.2% to R20.1944 against the sterling, not too far off Monday’s near one-year high of R19.9946.
“Markets have settled somewhat this morning after two volatile trading sessions. The rand, alongside other emerging market currencies, is somewhat stronger,” Standard Bank said in a note.
Government bonds were also firmer in early trade, with the yield for debt due in 2026 falling nine basis points to 9.04%.
The rand is still down 6% from last week’s high of R14.3015, reached before news filtered through that Britain had voted to leave the EU in a referendum, triggering an investors’ stampede to safe haven assets like the yen.
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Credit: Fin24