Rand firmer as eurozone woes ease pressure

Johannesburg - The rand halted its recent slide against the US dollar and bonds traded close to fresh one-month highs as the likelihood of deeper stimulus measures by the European Central Bank boosted the local currency.

The rand firmed 0.31% by 08:34 to R11.6725/$, reversing losses of the previous session that saw it sink to R11.7085 overnight.

The benchmark government bond due in 2026 continued a recent strong run, with the yield shedding 10 basis points in early trade to 7.835%, its lowest since December 10.

Analysts said bonds benefited from a sharp selloff in local equities as investors repositioned some of their debt.

Chances of further policy easing by the ECB increased after Germany's December inflation slowed to its lowest in five years, pushing the euro lower and temporarily easing pressure on some riskier emerging market assets.

In local data, HSBC publishes its December survey of business activity.