The rand advanced, headed for its best month since June, as exporters repatriated foreign-currency earnings in thin trading ahead of the two-day Christmas holiday.
South Africa’s currency gained as much as 0.5 percent and traded 0.3 percent stronger at 8.5666 per dollar by 10:18 a.m. in Johannesburg, the best performer of 16 major currencies monitored by Bloomberg. Yields on government 10.5 percent bonds due December 2026 were unchanged at 7.23 percent after falling 11 basis points last week.
South Africa’s markets close on Dec. 25 and 26 for the Christmas and Day of Goodwill holidays. South Africa’s equities market closes at 12 noon local time today. Moves are exaggerated in thin trading conditions, Warrick Butler, head of rand trading at Johannesburg- based Standard Bank Group Ltd., said by telephone.
“Liquidity is well below par today,” Butler said. “We saw a couple of exporters in the market this morning. The market is being driven purely by demand and supply.”
The rand has improved 4.1 percent this month, paring its loss for the year to 5.5 percent.
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