JOHANNESBURG. — South Africa’s rand rose yesterday, holding on to gains from previous sessions triggered by a global investor hunt for high yields and optimism over a breakthrough in trade standoff between China and the United States.
At 0800 GMT, the rand was up 0,28 percent at 14,08 after an overnight close of 14,12.
The rand has gained about 5 percent since mid-December, despite a raft of data releases showing a weak economy and nationwide blackouts by state power company Eskom, with investors willing to overlook the negatives and pocket the high yield.
The currency has hovered around a five-month best against the dollar for the last week. In the previous session it crossed below 14 before succumbing to some profit-taking as traders wrapped up positions heading into the end of the year.
With local markets closing early and volumes already slim, the rand is set to trade between 14 and 14,2 for the rest of the week. — Reuters Africa.