(Updates the rand; adds stocks, bonds)
JOHANNESBURG, June 4 (Reuters) – The South African rand strengthened on Friday and looked set for weekly gains, thanks to rising commodity prices and a weakening US dollar as investors turned to riskier but high yielding assets.
At 3:30 p.m. GMT, the rand was 1.16% firmer at 13.4725 to the dollar, trading at a new 28-month high.
The rand has advanced 2% this week and has gained more than 8% against the dollar this year so far.
“The rand strengthening bias remained broadly intact this week. … Most of the directional impetus came from the weakening US dollar and higher commodity prices which boosted South Africa‘s exports, ”said Kamilla Kaplan of Investec.
“At the same time, expectations of the United States (Federal Reserve) tolerating higher inflation and leaving monetary policy accommodative for a while have benefited high yielding assets. “
The dollar fell on Friday after data on non-farm wages in the United States showed hiring increased in May as the pandemic abated, but not as much as expected, tempering expectations that the Fed will tighten its policy. monetary policy as soon as possible.
Government bonds also strengthened and the yield on the instrument maturing in 2030 fell 12 basis points to 8.765%.
Johannesburg Stock Exchange (JSE) shares partially reversed the previous day’s losses to end the week almost at the same level as it ended last Friday.
Stocks were mainly boosted by weaker-than-expected US employment data, which eased fears of an overheating economy and thus allayed fears that strong employment data would be strong. mean higher inflation in the weeks and months to come.
The benchmark all-stock benchmark FTSE / JSE edged up 0.05% to end the week at 67,825 points, while the blue-chip 40-largest companies index closed 0.07% higher at 61,617 points.
The gain was led by the mining and industrial sectors thanks to high commodity prices and strong momentum in technology stocks, mainly the heavyweight of the Naspers Ltd. index. Naspers finished up 0.33%. (Reporting by Olivia Kumwenda-Mtambo and Promit Mukherjee; editing by Jonathan Oatis)