JOHANNESBURG, 21 July - South Africa's rand firmed against a weaker dollar on Friday, recovering from losses in the previous session after the central bank unexpectedly cut its benchmark lending rate for the first time in five years. dipped amid a sell off in mining shares on the back of a stronger rand.
At 1503 GMT, the rand ZAR=D3 traded at 12.9400 per dollar, 0.77 percent firmer than its New York close on Thursday.
In fixed income, government bonds extended gains on the rate cut, with the benchmark yield ZAR186= dipping 3.5 basis points to 8.515 percent.
"The question now remains where to from here? We know that any cutting cycle will not be too deep and so cheaper funding rates shouldn't be a massive support for our bonds," Rand Merchant Bank analyst Gordon Kerr wrote in a note.
"As a result, we still remain subject to the global environment, with particular focus on the (Federal Reserve) as its meeting is coming up next week."
On the bourse, the benchmark Top-40 index .JTOPI lowered 0.23 percent to 47,802 points while the All-Share index .JALSH dipped 0.23 percent to 54,163 points.
The mining sector .JMINI led the bourse lower after falling 1.2 percent on the back of a stronger currency.
"Its in a relatively stronger rand environment so there's a bit of a sell off in the miners," said Cratos Capital stock broker Yusuf Moola
Further losses came from retailer Truworths International TRUJ.J which fell 1.26 percent to 77.51 rand after flagging stalling full year profits.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.