Rand Gains Most Among Emerging-Market Currencies After G-20

The rand gained a second day as heads of the world’s biggest economies said they’ll pursue policies that won’t spook markets when the U.S. and Japan start rolling back monetary stimulus. Gold and platinum climbed.

Group of 20 nations will pursue “carefully calibrated and clearly communicated” policy moves so that the U.S. and Japan don’t cause cross-border damage when they start rolling back stimulus, they said after a two-day meeting of finance chiefs in Moscow. The rand led 15 gaining emerging-market currencies today among 24 tracked by Bloomberg.

“You see a little risk-on again with the news out of the G-20 where there was a united voice from emerging markets that they want to know how the Fed’s tapering of asset purchases is going to take place,” Vivienne Taberer, who helps manage the equivalent of $13.5 billion in emerging-market debt and currencies at Investec Asset Management, said by phone from Cape Town today.

The rand strengthened 0.9 percent to 9.7866 per dollar by 9:53 a.m. in Johannesburg. It lost 14 percent this year, making it the worst performer against the U.S. currency among 16 major currencies tracked by Bloomberg. Yields on government debt due December 2026 fell 2 basis points, or 0.02 percentage point, to 7.86 percent.

South Africa has the largest known reserves of platinum and chrome and is the world’s fifth-biggest producer of gold. The spot price of gold surged 1.7 percent to $1,317.64 per ounce. Platinum gained for a third day, rising 0.1 percent to $1,431.80 per ounce.

Foreigners bought a net 504 million rand ($51.3 million) of South African bonds on July 19, taking the total this year to 22.8 billion rand compared with 93.5 billion rand a year earlier, according to data from the Johannesburg Stock Exchange.

“Foreigners buying bonds will have an impact,” Taberer said. “That mood has started to change a little bit.”

To contact the reporter on this story: Jaco Visser in Johannesburg at avisser3@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

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