South African rand gains as dollar retreats and gold rallies
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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