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South African Rand Slightly Stronger in Restricted Trade As Holidays Approach

By on December 17, 2021 0


JOHANNESBURG, December 17 (Reuters) – The South African rand was slightly stronger on Friday morning in difficult trading conditions as the summer holiday season began.

At 0802 GMT, the rand was trading at 15.9050 against the dollar, about 0.1% firmer than its previous close.

ETM Analytics analysts said liquidity is likely to remain tight as many South Africans use the annual public holiday of December 16, reconciliation day, to kick off their year-end vacation.

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“As South Africa closes for the summer break, there are still many risks that are difficult to ignore,” they said in a research note, citing the rapid spread of the Omicron coronavirus variant and the possibility a resurgence of violence after a court decision ordering the return to prison of former president Jacob Zuma among these risks.

“At current levels, clear leadership is somewhat lacking,” they added.

The Johannesburg stock market was also firmer at the start of trading, with the All-share index up about 0.8% (.JALSH), and the yield on the government’s 2030 benchmark bond fell. 6.5 basis points to 9.385%.

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Reporting by Alexander Winning; Editing by Kirsten Donovan

Our Standards: Thomson Reuters Trust Principles.