Rand steady on global risk appetitie, stocks rise

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March 2, 2016 12:50 PM

At 0710 GMT, the rand traded at 15.5705 versus the dollar, 0.13 percent firmer from Tuesday's New York of 15.5900.

South African Rand coins are seen in this photo illustration taken September 9, 2015. REUTERS/Mike Hutchings

South Africa's rand steadied against the dollar in early trade on Wednesday as risk appetite returned after gains in oil prices and a batch of positive economic data calmed fears of a global economic slowdown.

"Rand gains have come on reduced global fears over an economic downturn and reduced local fears over politics," Rand Merchant Bank currency analyst John Cairns said in a note.

"Globally it has been risk-on," he added.

Since Monday, the rand has recovered after President Jacob Zuma said he supported Finance Minister Pravin Gordhan, following reports of a fallout between the two on Friday that sent the currency to its biggest daily loss since 2011.

In fixed income, and the yield for the benchmark instrument due in 2026 down 7.5 basis points to 9.275 percent.

On the stock market, the Top-40 index was up 0.9 percent while the broader all-share rose 0.6 percent in early trade.

Shares in South Africa's fourth-largest lender Nedbank were up 1.5 percent after it reported an 8.5 percent rise in annual profit, meeting estimates, as growth in fee income offset muted growth in lending.

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