BLBG:Rand Gains for First Day in Three as Commodities, Stocks Rally
The rand advanced for the first time in three days after better-than-expected U.S. retail sales fueled investor appetite for riskier assets, spurring gains in stocks and commodity prices.
South Africa’s currency strengthened 0.3 percent to 8.7710 per dollar as of 8:35 a.m. in Johannesburg, paring a 1.6 percent decline in the previous two trading days. Yields on 6.75 percent bonds due 2021 dropped two basis points to 6.76 percent.
U.S. retail sales jumped 1.1 percent in September, compared with the 0.8 percent increase forecast by economists, the Commerce Department said yesterday. The report followed Chinese export figures last weekend that also topped estimates. Metals and other commodities account for 45 percent of South Africa’s exports, according to government data.
“Global developments have turned more positive,” John Cairns and Josina Solomons, currency strategists at Rand Merchant Bank in Johannesburg, said in e-mailed comments. “Commodities are taking direction from the broad rally in risky assets.”
Emerging-market stocks gained, with the benchmark index rising to the highest level in more than a week. The Standard & Poor’s GSCI Index of raw materials climbed for the first time in three days and the price of metals including copper, nickel and platinum advanced.
To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net
To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net
