Rand firms slightly on better risk sentiment

August 28, 2015 5:21 AM

"All things being equal then it looks like we are due another day of consolidation if not slightly better risk sentiment."

South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko

South Africa's rand inched up against the dollar in early trade on Friday as global markets continued their recovery.

At 0621 GMT the rand was up 0.12 percent at 13.1400 per dollar, extending its recovery after tumbling to an all-time low of 14.00 at the start of the week.

"So far this morning Asian markets have behaved themselves. has not devalued again. All Asian indices are higher and the rand also starts the day slight stronger than last night’s NY close of 13.1550," said Warrick Butler a trader at Standard Bank.

Markets around the world plunged earlier in the week as a slump in Shanghai shares fuelled worries over China's economic health. Some calm returned after Beijing moved to ease policy late on Tuesday.

The yield for the 2026 benchmark was up 2 basis points at 8.355 percent.

Investors will today also be looking out for the local July main budget data released this afternoon by the National Treasury and new fuel prices for the next month.

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