The South African rand recovered some losses on Thursday, a day after emerging market assets took a hit following Donald Trump’s victory in the US election.
At 0820 GMT, the rand was trading at 17.5175 against the dollar, more than 0.7% stronger than its previous close. The local currency fell around 2.5% against the greenback at one point on Wednesday amid volatile trading.
The dollar fell from a four-month high to fall 0.3% against a basket of currencies, ahead of a Federal Reserve interest rate decision later in the day.
The Fed is expected to cut rates by 25 basis points, while the market will also focus on new clues from the US central bank on the path forward.
Locally, data released by South Africa’s central bank earlier showed that the country’s net foreign reserves increased to $61.197 billion at the end of October, from $61.029 billion in September.
In the stock market, the Top-40 index was up 0.7%.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 10 basis points to 9.3%.
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