UPDATE 1-South Africa's rand rallies, stocks boosted by commodity demand

  • Reuters
  • Forex News
UPDATE 1-South Africa's rand rallies, stocks boosted by commodity demand

* Rand rallies on technical rebound
* Stocks stronger on risk appetite

(Adds latest prices, analyst quotes)
JOHANNESBURG, May 20 (Reuters) - South Africa's rand
strengthened on Friday, shrugging off renewed dollar strength as
technical factors and a recovery in risk appetite globally
helped the unit recoup recent losses, while stocks were lifted
by demand for commodities.
By 1545 GMT the rand ZAR=D3 had firmed 0.8 percent to
15.6680 per dollar, further away from the 16.00 mark that
traders felt would have triggered further losses.
Traders at London-based 4Cast said the currency was moving
back into a value region that could ignite buying interest,
after selloffs earlier in the week saw it sink to 15.9900, a
two-month low.
The rand had weakened in the previous session after South
Africa's Reserve Bank left its benchmark lending rate unchanged
at 7 percent on Thursday, but has bounced back on its way
towards resistance around 15.3800. L5N18G4ID
On the bourse, iron ore prices edged higher on Friday as
steel mills recovered production which lent support to raw
minerals, although traders saw this as short-term support.
Iron ore producer Assore ASRJ.J rose 6.9 percent to 186.92
rand while Anglo American (LON: AAL ) AGLJ.J , which owns Kumba Iron Ore
KIOJ.J , strengthened 3.94 percent to 137.34 rand.
Avior Capital Markets trader Rabi Thithi said the bourse saw
a relief rally from pressure seen in previous sessions boosting
local commodities.
The benchmark Top-40 index .JTOPI rose 0.47 percent to
46,531 points while the broader All-share index .JALSH climbed
0.51 percent to 52,638 points.
Trade was lower, with 209 million shares changing hands
versus last year's daily average of 280 million shares.

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