Rand starts recovery as volatility slips
The rand gained to the strongest level in more than a week and bond yields fell for a fourth day as HSBC Holdings said emerging market currencies were set to rebound with a decrease in volatility. The rand may gain to about R10.40 a dollar by the end of the year, David Bloom, the global head of currency strategy at HSBC, told Bloomberg TV’s Guy Johnson. A credit rating upgrade for Mexico bolstered confidence in developing nations, which are stabilising after South Africa, Turkey and India raised rates to halt declines in their currencies. “Eventually volatility is going to come down, and those interest rates are going to look juicy.” The rand rose as much as 1.4 percent to R10.9818 during intraday trade and was bid at R10.9818 by 6.09pm. – Bloomberg