Rand touches 10-month high

File photo: Siphiwe Sibeko.

File photo: Siphiwe Sibeko.

Published Aug 10, 2016

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Johannesburg - South Africa's rand touched a new 10-month high against the dollar early on Wednesday and government bonds strengthened as investors hunted for yield in riskier assets.

Read also: Rand holds its ground

The rand touched 13.3520 versus dollar earlier in the session, its strongest level since October 23, according to Thomson Reuters data.

At 06h40 GMT, the rand was at 13.4075 per dollar, barely changed from its New York close on Tuesday.

Investors hunted for higher yields in emerging markets on expectations that interest rates in developed economies would remain low.

The local bourse was to open lower at 07h00 GMT, with the blue chip futures index down 0.36 percent.

The yield on 2026 benchmark government bond was down 8.5 basis points to 8.46 percent.

REUTERS

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