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South Africa’s rand bounces back after sell-off

South Africa’s rand gained in early trade on Friday, after falling by more than 3% in the previous session on growing doubts over a quick recovery from the coronavirus pandemic.

At 0605 GMT, the rand traded at 17.0450 per dollar, 0.76% firmer than its close on Thursday, while mining data highlighted how the country’s strict lockdown crippled output in April, and manufacturing data showed the sector was in bad shape even before the lockdown.

“The rand has recovered from its worst levels around 17.3000 posted last night, but the markets are likely to remain cautious ahead of the weekend,” analysts at Nedbank wrote in a note.

In fixed income, the yield on the government bond due in 2030 was up 3.5 basis points to 9.200% in early trade.

Source: Voice of Nigeria