JOHANNESBURG – South Africa’s rand scaled a three-week high against a weakening dollar on Thursday, boosted by slowing inflation and reassurances by Finance Minister Malusi Gigaba he didn’t have any offers to nationalise mines and banks.
At 0650 GMT, the rand had gained 0.36% to 13.2300 per dollar, its firmest since March 31, when compared to a close of 13.2775 overnight in The big apple.
The currency plunged as low as 13.9800 per dollar on April 10 after the cabinet reshuffle prompted downgrades by ratings agencies S&P and Fitch.
“Global short-term pressures around the rand have eased,” RMB Global Markets analyst John Cairns said from a note.
On Wednesday, data showed March inflation slowed to six.1% and Gigaba relocated to reassure investors after among his advisors necessary nationalisation of banks and mines.
“It truly is too early to say how the market finds a brand new post-downgrade level. There remains quite a bit on the political front designed to shock,” Cairns added.
Stocks were set to begin flat at 0900 GMT, with the JSE securities exchange’s Top-40 futures index down 0.05%.
In fixed income, bonds firmed since the yield for your benchmark government bond due in 2026 2 basis points to 8.750%.