Commodity rally boosts rand

Johannesburg - The rand gained against the dollar in early trade on Wednesday, bolstered by a record gold price that should also help lift Johannesburg's resource-heavy bourse.

The price of gold, a key South African export, was just off an all-time high despite the dollar holding near a one-month peak against a basket of currencies ahead of a statement from the US Federal Reserve later in the day.

Asian stocks edged higher with investors wary ahead of the Fed's statement.

A higher platinum price should also help boost local shares. The blue chip Top-40 December futures contract was up just over 1% at 06:39 GMT, ahead of the market open at 07:00 GMT.

The rand was trading at 7.7588 to the dollar, 1.1% stronger than its previous close in New York.

"It's coming back quite nicely. I would put it down to the rally in commodity prices," George Glynos, managing director of market analysts ETM, said. "You've had platinum and gold rallying quite nicely."

South Africa is the world's biggest producer of platinum.

Glynos said the currency could now target 7.66 against the dollar, with direction coming from the dollar and US data.

US jobless data was due for release at 13:15 GMT and the Fed rate decision at 19:15 GMT. No major local data was scheduled for the session.

South Africa's central bank Deputy Governor Daniel Mminele reiterated concern about the rand's strength in a speech late on Tuesday, but repeated the Reserve Bank's policy of not interevening to manage the currency.

Government bonds firmed slightly, supported by the rand's gains.

The yield, which moves inversely to the price, on the 2015 bond fell 2.5 basis points for the session to 8.44% while the 2036 yield was down 3 basis points at 8.71%.

- Reuters