South African rand strengthens in early trade as dollar retreats

The South African rand strengthened in early trading on Tuesday as the dollar fell in global markets and risk appetite was boosted by policy measures in China.

As of 07:40 GMT, the rand was trading at 17.1900 against the dollar, around 0.7% higher than its closing level on Monday.

With no major economic data coming out of South Africa on Tuesday, traders looked to U.S. Producer Price Index data later in the day for more guidance on the pace of price increases. Federal Reserve rate.

The dollar index, which tracks the US currency against a basket of others, fell more than 0.6%.

Some Chinese cities have started reducing routine community testing, days after China announced a relaxation of some of its coronavirus measures. And Beijing has announced support measures aimed at increasing the liquidity of the real estate sector, the pillar of the second world economy.

These movements led to a rebound in Asian stock markets on Tuesday.

At the Johannesburg Stock Exchange, the Top-40 index rose about 0.9%. The government’s benchmark 2030 bond was slightly stronger in early trades, with the yield down 2 basis points to 10.185%. (Reporting by Nellie Peyton Editing by Alexander Winning and Angus MacSwan)

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