HARMONY: 2,819 -21 (-0.74%)
South Africa's rand firmer on dollar retreat; stocks up
* Rand strengthens on risk rally as dollar weakens
* Stocks up led by gold shares
(Updates prices, analyst quote)
JOHANNESBURG, Aug 27 (Reuters) - South Africa's rand
rand firmed by one percent against to the dollar after
the greenback weakened for a second straight session, while
stocks firmed across the board tracking the stronger rand.
Comments by the U.S. Federal Reserve Chairman Jerome Powell
on Friday suggested a slower pace of monetary tightening,
putting pressure on the dollar.
At 1540 GMT, the rand traded 1.2 percent firmer at
14.1200 per dollar.
"It's mainly due to the slide in the dollar. I don't believe
it's any local factors," said Treasury One dealer Andre Botha.
Fed chief Jerome Powell said on Friday the U.S. central bank
was sticking with its strategy of gradual rate hikes to protect
"It's a better time for emerging markets," said Afrifocus
Securities derivatives trader Cheslyn Francis.
He said Emerging Markets have attracted inflows despite the
ongoing trade war between the U.S. and China.
In fixed income, the yield on the benchmark government bond
due in 2026 was down 3 basis point to 8.87 percent.
On the bourse, the Johannesburg All-share index
closed 1.46 percent stronger at 59,656 points. The blue-chip top
40 index rose 1.54 percent to 53,555 points.
Bullion producer Harmony Gold rose 3.84 percent to
23.52 rand, followed by diversified miner Sibanye-Stillwater
closed 3.98 percent up to 8.36 rand as the spot price
of the precious metal recovered.
Gold prices slid in the previous session when Powell
reiterated the central bank's intention to raise rates
(Reporting by Nomvelo Chalumbira and Tanisha Heiberg
Editing by James Macharia)
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