South African rand gains as dollar retreats and gold rallies

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Uupdate rand to reflect afternoon trade, add actions

JOHANNESBURG, October 13 (Reuters)The South African rand posted strong gains on Wednesday as the dollar retreated, gold prices rose and local bonds rose.

At 3:30 p.m. GMT, the rand ZAR = D3 traded at 14.8275 against the dollar, about 1% firmer than its previous close.

The dollar .DXY hit a one-year high on Tuesday amid rising expectations that the U.S. Federal Reserve will announce a cut in its stimulus measures next month, but it fell more than 0.3% from a basket of currency Wednesday.

This has helped to increase the prices of precious metals like gold XAU = and platinum XPT =, South Africa’s main exports, before the minutes of the Fed’s latest policy meeting are released later in the session. GOL /

Lower yields on the US Treasury US10YT = RR supported the appetite for local government debt in South Africa, with the yield on the 2030 benchmark bond ZAR2030 = down 16 basis points to 9.38%.

Markets ignored disappointing national retail data ZARET = ECI which showed that sales had fallen 1.3% year-on-year in August, while economists had forecast an increase of 2.6%.

Shares held steady, with the Johannesburg Stock Exchange’s Top-40 index .JTOPI up 0.03% to 59,517 points and the broader equity index .JALSH up 0.04% to 66,013 points.

Precious metal miners were among the top performers of the day. Anglo-American Platinum AMSJ.J was the biggest winner in the blue chip index, up 3.34%, followed by AngloGold Ashanti ANGJ.J and fields of gold GFIJ.J, up 3.16% and 2.81% respectively.

(Reporting by Alexander Winning and Emma Rumney, editing by William Maclean)

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