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Rand recovers after two days of Brexit volatility

folarin okunola

June 28, 2016 5:07 PM

The stock market also got off to a firm start at 0700 GMT, with the Top-40 index adding 1.3 percent, while the All-share index was up 1 percent.

South African rand notes, file. REUTERS/Siphiwe Sibeko

South Africa's rand recovered its footing against the dollar on Tuesday after two days of volatile trading spurred by Britain's decision to leave the European Union.

The rand scaled a session high of 15.1675 to the greenback, and was trading at 15.1875 by 0705 GMT, up 1.5 percent from Monday's close.

It also gained 1.2 percent to 20.1944 against sterling, not too far off Monday's near one-year high of 19.9946.

"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 9 basis points to 9.04 percent.

The rand is still down 6 percent from last week's high of 14.3015, 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.

folarin okunola

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