South Africa’s rand climbs to 8 week high against dollar

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’s rand raced to its highest in more than eight weeks against the U.S. on Tuesday, as optimism about a global recovery from the pandemic boosted riskier assets, with investors looking past Sino-U.S. tensions.

At 0605 GMT, the rand traded at 17.4700 per , 0.91 per cent firmer than its previous close.

The currency was at its strongest since March 27.

“The optimistic recovery narrative is holding within markets, keeping the dollar subdued and seeing the rand remain on a stable footing following last week’s rally,” Bianca Botes, executive director at Peregrine Treasury Solutions, said in a note.

“While there are looming geopolitical risks, it seems as though markets are currently pushing them onto the back burner, and will likely continue to do so until there is a new escalation or increased threat.”

Japan’s decision to end -induced restrictions and a survey showing German business morale rebounded in May, lifted hopes of an economic recovery and helped offset a war of words between Beijing and Washington on , and China’s proposals for stricter security laws in Hong Kong.

In , President Cyril Ramaphosa announced on Sunday a further easing of the country’s from June 1, allowing the vast majority of the to return to full capacity.

The government was due to give more details on Tuesday. (Reuters/NAN)

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