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Johannesburg - The rand added to recent gains against the dollar on Thursday, touching fresh three month highs as investors flocked into emerging markets, a day after US Federal Reserve minutes seen as more dovish than expected.
The rand clocked a session high of R10.3600/$, a level last reached in late December last year, and was at R10.4080/$ by 16:34 GMT, little changed from Wednesday's close.
The dollar struggled against a basket of major currencies after minutes of the Fed's March meeting disappointed investors positioned for a gradual tightening in US monetary policy.
"Reading through the Fed minutes last night and seeing that in actual fact the tone of Fed itself is much more dovish than what consensus was sitting at, has been a cause for dollar weakness overnight," said Investec trader Ryan Wibberley.
Some emerging market portfolio managers, concerned about Russia's role in Ukraine's political crisis, were taking money out of the European country and into rival markets like South Africa, Wibberley said.
"The 10.25 mark (for dollar/rand) certainly looks on the cards; beyond that we've got a bit a work to do," he added.
South African government bonds were also firmer on Thursday, with the yield for paper maturing in 2015 falling 7 basis points to close at 6.645%, while the benchmark due in 2026 dropped 10 basis points to 8.255%.
The rand clocked a session high of R10.3600/$, a level last reached in late December last year, and was at R10.4080/$ by 16:34 GMT, little changed from Wednesday's close.
The dollar struggled against a basket of major currencies after minutes of the Fed's March meeting disappointed investors positioned for a gradual tightening in US monetary policy.
"Reading through the Fed minutes last night and seeing that in actual fact the tone of Fed itself is much more dovish than what consensus was sitting at, has been a cause for dollar weakness overnight," said Investec trader Ryan Wibberley.
Some emerging market portfolio managers, concerned about Russia's role in Ukraine's political crisis, were taking money out of the European country and into rival markets like South Africa, Wibberley said.
"The 10.25 mark (for dollar/rand) certainly looks on the cards; beyond that we've got a bit a work to do," he added.
South African government bonds were also firmer on Thursday, with the yield for paper maturing in 2015 falling 7 basis points to close at 6.645%, while the benchmark due in 2026 dropped 10 basis points to 8.255%.
