JOHANNESBURG (Reuters) -The South African rand strengthened on Thursday, recovering more of the ground it lost earlier in the week as global risk appetite recovered.
The currency plunged on Tuesday, falling more than 1% against the dollar during a steep global sell-off triggered by growing concerns about stretched stock market valuations.
At 1050 GMT the rand traded at 17.36 against the dollar, up about 0.2% on Wednesday’s close.
“All signs indicate that the rand could regain even more ground,” ETM Analytics said in a research note, citing buoyant gold and platinum prices among reasons why the rand could extend its advance.
Gold rose above the key $4,000 per ounce level on Thursday, as a retreat in the dollar and a prolonged U.S. government shutdown raised worries over the economic outlook.
The Johannesburg Stock Exchange’s Top-40 index was last up 0.3%.
South Africa’s benchmark 2035 government bond was marginally stronger, as the yield fell 1.5 basis points to 8.77%.
(Reporting by Anathi Madubela;Editing by Alexander Winning)
