Rand starts recovery as volatility slips

Comment on this story
IOL pic feb7 rsa bank notes Reuters File photo: Siphiwe Sibeko

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

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines